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Differences Between Bitcoin and Ethereum (Comparison of Bitcoin and Ethereum)

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What are the differences between Bitcoin and Ethereum? We can understand the tec

Differences Between Bitcoin and Ethereum (Comparison of Bitcoin and Ethereum)

What are the differences between Bitcoin and Ethereum? We can understand the technical differences between the two networks from their fundamental differences.

Bitcoin is a digital currency that has value proposition similar to traditional fiat currencies (such as the US dollar). However, due to the anonymity of the blockchain, Bitcoin cannot be stolen or transferred like cash; it also belongs to a non-custodial encryption system, which means that Bitcoin cannot be directly held and controlled by anyone. Therefore, Bitcoin is implemented through smart contracts, so Bitcoin and Ethereum have the same functionality. But what problems arise if these assets are used in different ways? Let’s take a look together!

1. Both parties to the transaction need to confirm its correctness.

Bitcoin and Ethereum both adopt a dual token model. The first token was issued during the ICO period in 2017, and the second token is Ethereum. At that time, Ethereum developer Vitalik Buterin claimed that he wanted to use Ethereum as an investment tool to provide higher investment returns than existing financial products.

2. Users can store their private keys on Ethereum.

Although these two virtual assets have essential differences, there are significant differences in their practical applications: Bitcoin is a network built on a decentralized protocol owned by an entity and not managed by a central authority. This project has attracted many early users, including some of the best cryptographers, engineers, and entrepreneurs, who believe that Bitcoin is a better hedge against inflation and a way to protect personal data.

3. Users do not need to know what they want to send. For example, if you want to sell your Bitcoin to someone or a company, and then someone sends you money, and then buy in another amount of money. This allows customers to get the amount they need and pay bills.

4. Everyone can create their wallet address.

Ethereum founder Vitalik Buterin said that Bitcoin has the ability to create more functions because its mechanism is very simple and easy to understand: when people start to believe in something, they will generate new digital IDs, thereby increasing trust. Once this trust is depleted, then all bitcoins will disappear, and Bitcoin will lose all its value.

5. The security of users’ funds is not affected.

To ensure security and prevent loss or hacking, most users choose exchanges. For those who want to buy Bitcoin, this is a good choice. After all, in the past few months, the price of Bitcoin has been rising until this summer. As the price of Bitcoin continues to rise, many new players are rushing to Bitcoin.

Differences Between Bitcoin and Ethereum

The biggest difference between Bitcoin and Ethereum is that in terms of network capacity, Bitcoin has two significant advantages. The first is its decentralization, which can be controlled by anyone. The second is validating transactions on the blockchain that stores transaction data; and the third is the scalability of Ethereum, which will make it more scalable and efficient. Although Bitcoin and Ethereum have the same functionality, features, and even user groups, they have one thing in common-there is no connection between them. “Currency” refers to a kind of digital asset or a category of virtual goods whose price fluctuations will greatly affect the price of the asset (such as the price of gold), and investors need to set a limit for these values.

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