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Similarities and Differences Between Bitcoin and Ethereum

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Cryptocurrency works through the block-chain, as it is also a decentralized, digital system. Defined as a digital or virtual currency, it uses cryptography for security purposes and is not operated by any particular authority – essentially, it is immune to authoritative control.

Bitcoin is the most popularly used one of cryptocurrency, (Liang et.al, 2018).

Many companies accepts Bitcoin payments, though most partner with an exchange to convert Bitcoin into U.S. dollars before receiving their funds.

Ethereum makes some noteworthy improvements on Bitcoin’s basic architecture. In particular, it utilizes “smart contracts” that enforce the performance of a given transaction, compel parties not to renege on their agreements, and contain mechanisms for refunds should one party violate the agreement (Fernández-Caramés et.al, 2018). Though “smart contracts” represent an important move toward addressing the lack of chargebacks and refunds in cryptocurrencies, it remains to be seen whether they’re enough to solve the problem completely.

Similarities and Differences Between Bitcoin and Ethereum

Similarity

Ether and bitcoin are similar in numerous ways: each may be an advanced money exchanged by means of online trades and put away in different sorts of cryptocurrency wallets. Both of these tokens are decentralized, meaning that they are not issued or controlled by a central bank or other specialist. Both make utilize of the conveyed record innovation known as blockchain.

Difference

  1. The cryptocurrency of the Ethereum, the second most popular digital token but bitcoin is first most popular one.
  2. Ethereum proposed to utilize blockchain technology not as it were for keeping up a decentralized installment organize but too for putting away code which can be utilized to control tamper-proof decentralized budgetary contracts and applications. But, bitcoin, the blockchain, may well be utilized for other purposes.
  3. Ethereum applications and contracts are powered by ether, the Ethereum network’s currency.
  4. Ether was expecting to complement instead of compete with bitcoin, but it has in any case risen as a competitor on cryptocurrency trades.

Experience

When I entered the crypto-sphere I set up few rules pointing a completely decentralized experience.

  • I will NOT exchange fiat cash for crypto
  • I will NOT exchange crypto for fiat money
  • I will As it were bargain with bitcoins
  • I will As it were utilize cryptocurrency anonymously
References
  • [1] Fernández-Caramés, T. M., & Fraga-Lamas, P. (2018). A Review on the Use of Blockchain for the Internet of Things. Ieee Access, 6, 32979-33001.
  • [2] Liang, J., Li, L., & Zeng, D. (2018). Evolutionary dynamics of cryptocurrency transaction networks: An empirical study. PloS one, 13(8), e0202202.

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