Is Ethereum like Bitcoin?

Discussion • 2021/01/15 • by

Ethereum and Bitcoin might be somehow similar when it comes to the cryptocurrency aspect, but the reality is that they are two completely different projects with completely different goals. While Bitcoin has established itself as a relatively stable and the most successful cryptocurrency to date, Ethereum is a multipurpose platform with its digital currency Ether being just a component of its smart contract applications.

Even when comparing the cryptocurrency aspect, the two projects appear to be vastly different. For instance, Bitcoin has a hard cap of 21 mln Bitcoins that can ever be created, while a potential supply of Ether can be practically endless. Moreover, Bitcoin’s average block mining time is 10 minutes, whereas Ethereum’s aims to be no more than 12 seconds, which means quicker confirmations.

Another major difference is that these days successful Bitcoin mining requires tremendous amounts of computing power and electricity and is only possible if using industrial-scale mining farms. On the other hand, Ethereum’s proof-of-work algorithm encourages decentralized mining by individuals.

Perhaps the most important difference between the two projects is that Ethereum’s internal code is Turing complete, which means that literally everything can be calculated as long as there is enough computing power and time to do so. Bitcoin doesn’t have this capability. While a Touring complete code provides Ethereum users with practically limitless possibilities, its complexity also means potential security complications.