··· ·· · Bitcoin - VS - Ethereum · ·· ···

BITCOIN VS ETHEREUM: SIMILARITIES AND DIFFERENCES

Both currencies are generating a multitude of headlines throughout this year. Especially because we are living a very large bubble in the world of the criptomonedas. But in spite of that, both Bitcoin and Ethereum have aspects in common, although many more that differentiate them.
How are these coins different? How are they alike? Here are the answers to these questions below in this article. So that you can have a clearer idea of ​​both.

SIMILARITIES BETWEEN BITCOIN AND ETHEREUM

The aspects in common between both are the basic of any criptomoneda. Both are used as a coin and have their own symbology. In addition, in both cases its use is recorded in block chains. And once a transaction is made, there is no reversal possible.
Both Bitcoin and Ethereum can be used to pay, buy or store currency as a value reserve. It should also be noted that in the case of cryptomoneda, the value moves among participants. There is no middleman.
From what you can see, the similarities are quite simple and basic. They are simply the characteristics of any criptomoneda. That is why we turn to the differences between the two currencies.

DIFFERENCES BETWEEN BITCOIN AND ETHEREUM

The first difference we find is when dividing the whole part of the value of the coins into decimals. In the case of Bitcoin it reaches 8 decimals. But that is not so in the case of Ethereum that reaches 18 decimals. Bitcoin's smallest units are mili bitcoin, micro bitcoin and satoshi, which is the smallest of all. In the Ethereum case, the ether coin is divided into finney, szabo, shannon, babbage, lovelaces, and wei.
Another difference between the two is security as an algorithm. Each uses a different system. Bitcoin uses a SHA-256d algorithm. In the case of Ethereum, EtHash is used.

There is also a noticeable difference in the time required for a block to be confirmed and validated by a miner. If we focus on Bitcoin, the time to be able to add to the block chain is approximately 10 minutes (600 seconds). In Ethereum this time is much smaller, it is only 16 seconds. And it is also necessary to mention the price obtained by mined block. For those who mined an Etherum block, the prize is always constant. In Bitcoin, this award is decreasing, and every four years it is divided. In the beginning, in Bitcoin the prize was 50 bitcoins. Now stands at 12.5.
Another big difference is the amount of coins that are of each one of them. In Bitcoin there is a maximum limit of coins that will be generated. This limit stands at 21 million coins. But, Ethereum does not have such a limit. This causes Ethereum to become an inflationary system. This has direct consequences when choosing a currency or another. Because it depends on whether we want to buy or invest, it will compensate us more to use a different currency.

A term that sounds to many of you is the back of the cycle of difficulty. It is the time it takes to inform the network of a new value. For Bitcoin users it takes 2016 blocks. But in the case of Ethereum does each block, so it takes about 16 seconds. Although, the size of the block in these cases also influences. For Bitcoin users, the size is limited to 1Mb. But Ethereum has no limit at the moment.

A difference that deserves its own section between both is this. Smart contracts are something that Etherum owns and Bitcoin does not. These are contracts that identify each of the contracts that are made. Although in the case of Bitcoin some types of contracts are realized, they are not similar to these.
Smart contracts are a piece of software code that runs transparently. Includes a financial transaction. And in the case of Ethereum runs in blockchain with those who can make payments. But, many are unaware of the usefulness of these contracts.
They have many utilities to tell you the truth. They are mainly used to do things that we would do normally in a normal bank. Therefore, we can purchase financial products or other services. But, the difference is that in this case there are no intermediaries.
At the moment it is something that is limited to Ethereum, although it would not be a surprise if some other virtual currency uses it also in the future.