Ethereum And Bitcoin: What's The Difference?

Ethereum And Bitcoin: What’s The Difference?

Ameer Rosic
12/19/16 10:24 AM 2017-01-15 21:11:57
While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its addition

While Bitcoin has long been dominant in the cryptocurrency scene, it is certainly not alone. Ethereum is another cryptocurrency related project that has attracted a lot of hype because of its additional features and applications. So, what is the difference between Ethereum and Bitcoin?

 

Ethereum And Bitcoin: What's The Difference?

 

Ethereum And Bitcoin: What’s The Difference?

Ethereum: More Than Just Money

The first thing about and Bitcoin are similar in many ways, but have key differences. Both of them are peer to peer decentralized cryptocurrencies that leverage a blockchain. They can both be used as a store and transfer of value. But Ethereum aims to serve a different purpose: smart contracts. Smart contacts are essentially Ethereum addresses that contain executable code. This code is stored in the Ethereum blockchain. For example, you may have an Ethereum address/smart contract containing code that shows if any currency is sent to that address, it will automatically be forwarded to another Ethereum address.

Both currencies are still in very early stages, but Bitcoin displays more stability as a currency today. In my opinion, Bitcoin will continue to be the top digital currency for storage and transfer of value due to reduced volatility and a well-established network effect. Ethereum, on the other hand, will also continue to grow, and for the near term perhaps see more experimentation and development occurring on the network. In fact, there are already highly sophisticated Ethereum smart contracts in existence that essentially act as autonomous corporations, referred to as Digital Autonomous Corporations (DAO). DigixDAO is a good example of a currently existing one. The DAO is an example of what can go wrong with these!

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