Question

How does Ethereum differ from Bitcoin?

Answer 1

Ethereum differs from Bitcoin in several key ways, including:

1. Purpose: Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps), whereas Bitcoin is primarily a digital currency used for peer-to-peer transactions.
2. Mining algorithm: Ethereum uses a different mining algorithm called Ethash, while Bitcoin uses the SHA-256 algorithm.
3. Block time: Ethereum has a faster block time of around 15 seconds compared to Bitcoin's 10 minutes.
4. Programming language: Ethereum uses a Turing-complete programming language called Solidity, allowing for more complex smart contracts, while Bitcoin uses a simpler scripting language.
5. Supply: Bitcoin has a fixed supply cap of 21 million coins, while Ethereum does not have a fixed supply limit.
6. Governance: Ethereum has a more flexible governance model, with proposals and updates decided through community consensus, whereas Bitcoin's governance is more decentralized and relies on consensus among miners and developers.

Answer 2

Ethereum differs from Bitcoin in several key ways:

1. Purpose: Ethereum is a decentralized platform that enables smart contracts and decentralized applications (dApps) to be built on its blockchain, whereas Bitcoin is primarily a digital currency used for transactions.

2. Mining algorithm: Ethereum currently uses a proof-of-stake consensus algorithm called Casper, while Bitcoin uses a proof-of-work algorithm. This means that the way new coins are minted and transactions are validated differs between the two cryptocurrencies.

3. Block time: Ethereum has a faster block time of around 12-15 seconds, compared to Bitcoin's 10 minutes. This allows for faster transaction confirmations on the Ethereum network.

4. Supply cap: Ethereum does not have a hard cap on the total supply of Ether, its native cryptocurrency, while Bitcoin has a fixed supply cap of 21 million coins. This means that Ethereum could potentially have an unlimited supply, although there are discussions about moving to a deflationary model in the future.

5. Programming language: Ethereum has its own programming language called Solidity, which is used to write smart contracts on the platform. Bitcoin, on the other hand, does not support smart contracts in the same way.

These are just a few of the key differences between Ethereum and Bitcoin. Each cryptocurrency has its own unique features and use cases within the broader blockchain ecosystem.