Ethereum is a decentralized public blockchain-based distributed computing platform that enables smart contracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control or interference from a third party. Ethereum platform offers a token called “ether.” Ether is used to pay for the use of the Ethereum network and to compensate those who contribute to it.
Bitcoin is a digital currency that uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin has been around since 2009 and has many more users than Ethereum was introduced in 2015.
Difference between Ethereum and Bitcoin is that Bitcoin relies on blockchain technology while Ethereum relies on distributed computing.
What are the advantages of Ethereum over Bitcoin?
- The first advantage of Ethereum over Bitcoin is its ability to execute scripts and not just transactions. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or futures contract), and many other things that have not been invented yet, all without a middleman or counterparty risk.
- The second advantage of Ethereum over Bitcoin is its capability to be customized by anyone. Unlike Bitcoin’s one size fits all approach, Ethereum allows users to create their own tokens on top of the blockchain so they can serve whatever purpose they want (e.g., representing shares in an organization).
- The third advantage of Ethereum is that it enables developers to create their own token. This can be used for crowdfunding, as a voting system or for any other purpose.