The Leading Source Of Original Research And Insights On Business Model Strategy, Digital & Tech Business Models
Ethereum Vs. Bitcoin: What Are The Key Differences?
Bitcoin and Ethereum are both blockchain protocols. Bitcoin was initially thought to solve the money use case, where the blockchain is used as a trustless entity that enables two parties to transact without an intermediary. Ethreum was thought of as a modular and programmable blockchain, enabling the development of decentralized apps on top of that. So, where Bitcoin looks more like digital gold. Etehreum looks more like the Internet protocol.
Understanding the key differences between Bitcoin and Ethereum
To understand the key difference on how Bitcoin and Ethereum work, let’s look at two consensus mechanisms:
Where Ethereum has born as a proof of work blockchain, it has transitioned more and more toward proof of stake. Indeed, Ethereum by transitioning toward Ethereum 2 integrates mechanisms like proof of stake and sharding that enables it to become more scalable, compared to the Bitcoin’s protocol.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.