What is the Difference between Bitcoin and Ethereum?

What is the Difference between Bitcoin and Ethereum?
2 min read
29 November 2023

Purpose:

Bitcoin(BTC): Purpose of designing as a digital currency. It aims to be a peer-to-peer electronic cash system, allowing for secure, transparent, and borderless transactions in cryptocurrency exchange platform without the need for intermediaries like banks.

Ethereum(ETH): While it can be used as a digital currency, Ethereum's main purpose is to facilitate smart contracts and decentralized applications (DApps). It provides a platform for developers to build and deploy these applications on its blockchain.

Blockchain Technology:

Bitcoin(BTC): Uses a blockchain to record transactions .Its blockchain is focused on securely and transparently recording the transfer of value.

Ethereum(ETH): Also uses a blockchain to record transaction details of those who Buy and Sell Ethereum, but it is more versatile. Ethereum's blockchain supports smart contracts, self-executing contracts with the terms of the agreement directly written into code.

Smart contracts:

Bitcoin(BTC): Does not natively support smart contracts. Its scripting language is limited, focusing on the transfer of value.

Ethereum(ETH): Introducing the concept of smart contracts, Ethereum allows users not only to Buy Ethereum (ETH) but also to engage in programmable contracts. These contracts automatically execute and enforce terms when predefined conditions are met.

Supply Limit:

Bitcoin(BTC): Capped at 21 million coins, creating scarcity and potentially influencing its value as a store of value.

Ethereum(ETH): No fixed supply limit. Ethereum's supply is determined by the network's rules, and the issuance rate has been subject to changes.

Mining Algorithms:

Bitcoin(BTC): Uses the SHA-256 proof-of-work algorithm for mining

Ethereum(ETH): Initially used a proof-of-work algorithm (Ethash) like Bitcoin but has plans to transition to a proof-of-stake consensus mechanism with Ethereum 2.0 to improve scalability and energy efficiency.



On the Koinpark platform, users can actively trade  ETH to INR, and Bitcoin BTC to INR providing a convenient avenue for seamless transactions and investment opportunities. Koinpark's user-friendly interface enhances the trading experience.

Users can seamlessly trade Bitcoin and Ethereum on global cryptocurrency exchange platforms such as Koinpark. These platforms provide a user-friendly interface, liquidity, and security for buying and selling these popular cryptocurrencies.




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Eddie Barret 2
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