Bitcoin (BTC):
Bitcoin is a decentralized digital currency and store of value designed for peer-to-peer transactions on a global cryptocurrency exchange platform.
Ethereum (ETH):
Ethereum is a decentralized blockchain platform that enables the creation and execution of smart contracts and decentralized applications (DApps), fostering a wide range of programmable and decentralized functionalities beyond traditional transactions.
There are five differences between Bitcoin and Ethereum.
Intent and Operational Features:
Bitcoin (BTC):
Bitcoin is a decentralized, open-source digital currency with value storage.
Its main objective is to operate as a peer-to-peer electronic cash system, eliminating the need for middlemen like banks and facilitating safe, open transactions.
Ethereum (ETH):
Ethereum is moving toward a proof-of-stake (PoS) method, which will improve scalability and energy efficiency. Currently, Ethereum uses a proof-of-work consensus, similar to Bitcoin.
During this change, trades will be made using the cryptocurrency exchange app.
Blockchain Technology:
Bitcoin (BTC):
The Bitcoin blockchain is a transaction recorder that is mostly used as a ledger for financial transactions.
Platforms and exchanges are available for cryptocurrency enthusiasts to buy BTC and track their transactions.
Ethereum (ETH):
Ethereum makes use of a blockchain, but a more flexible one.
Ethereum's blockchain is intended to record transactions as well as allow the execution of smart contracts, which are self-executing agreements with predetermined terms encoded into code.
Smart Contracts:
Bitcoin (BTC):
The limited language of Bitcoin is designed for easy transactions.
The sophisticated smart contracts that Ethereum supports are not supported by it.
Ethereum (ETH):
The ability of Ethereum to carry out smart contracts, which allow automated agreements with self-executing code, is a notable feature.
By browsing and buy ETH on Koinpark, everyone can take part in the wide range of decentralized apps and use cases made possible by this functionality.
Limit of Supply:
Bitcoin (BTC):
Because of its capped quantity of 21 million coins, Bitcoin is by nature a deflationary asset.
Given its scarcity, anyone can use a variety of cryptocurrency tools to track and convert BTC to INR.
Ethereum (ETH):
Ethereum does not have a fixed supply limit.
Ethereum is in the process of transitioning to Ethereum, which aims to implement a proof-of-stake consensus mechanism and potentially change the supply dynamics.
Mechanism of Consensus:
Bitcoin (BTC):
Bitcoin uses a proof-of-work (PoW) consensus mechanism; miners will solve complex mathematical problems to validate transactions and add new blocks to the blockchain.
Ethereum (ETH):
Ethereum presently employs a proof-of-work consensus similar to Bitcoin but is moving towards a more scalable and energy-efficient proof-of-stake (PoS) mechanism with Ethereum.
Users can monitor and convert ETH to INR during this transition using cryptocurrency platforms.
Conclusion:
Whereas Ethereum serves as a decentralized platform that facilitates smart contracts and decentralized apps (DApps), Bitcoin is essentially a decentralized digital money and store of value.