Bitcoin and Ethereum: How They Work

Bitcoin and Ethereum are two of the most talked-about cryptocurrencies in the world today. While they are similar in a lot of ways, there are also some key differences between the two.

To start with, Bitcoin is the first and most well-known cryptocurrency, while Ethereum is a newer entrant into the market. Bitcoin was created in 2009, while Ethereum was launched in 2015.

Bitcoin is based on blockchain technology, while Ethereum is based on the Ethereum blockchain.

Bitcoin is designed primarily as a payment system, while Ethereum is designed to be a platform on which decentralized applications can be built.

Bitcoin is deflationary, while Ethereum is inflationary.

Bitcoin is mined using proof of work, while Ethereum is mined using proof of stake.

Bitcoin has a fixed supply of 21 million coins, while Ethereum has a total supply of 100 million coins.

Bitcoin is more expensive than Ethereum. As of September 2017, one bitcoin was worth around $4,000, while one ether was worth around $300.

Bitcoin and Ethereum are both digital currencies that can be used to pay for goods and services. They can also be traded against each other on cryptocurrency exchanges.

Bitcoin and Ethereum are both based on blockchain technology, but they have different underlying protocols. Bitcoin is based on the blockchain technology that was first created by Satoshi Nakamoto for the Bitcoin cryptocurrency, while Ethereum is based on the Ethereum blockchain, which was created by Vitalik Buterin.

Bitcoin is designed primarily as a payment system, while Ethereum is designed to be a platform on which decentralized applications can be built. Bitcoin is intended to be used as a digital currency, while Ethereum allows for the development of decentralized applications that run on a blockchain network.

Bitcoin is deflationary, while Ethereum is inflationary. Bitcoin has a fixed supply of 21 million coins, while Ethereum has a total supply of 100 million coins. Ethereum has a higher inflation rate than Bitcoin, with new coins being created at a rate of 5% per year.

Bitcoin is mined using proof of work, while Ethereum is mined using proof of stake. Bitcoin is mined by computers solving complex mathematical problems, while Ethereum is mined by people holding ether coins in a wallet. For Ethereum, the more coins someone holds, the more likely they are to be chosen to mine new blocks.

Bitcoin is more expensive than Ethereum. As of September 2017, one bitcoin was worth around $4,000, while one ether was worth around $300. Ethereum has been gaining in value relative to Bitcoin in recent months, but it is still significantly cheaper than Bitcoin.