In this video, we delve into a comprehensive comparison between Ethereum and Bitcoin. Ethereum, being a platform for decentralized applications, has a unique set of features that differentiate it from Bitcoin, which is primarily known as a digital currency.

Key Differences

  1. Purpose:

    • Bitcoin: A decentralized digital currency, aimed at being a peer-to-peer electronic cash system.
    • Ethereum: A decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, fraud, or third-party interference.

  2. Blockchain Structure:

    • Bitcoin: Uses a Proof of Work (PoW) consensus mechanism.
    • Ethereum: Initially used PoW, but has transitioned to Proof of Stake (PoS) with Ethereum 2.0.

  3. Smart Contracts:

    • Bitcoin: Does not support smart contracts.
    • Ethereum: Supports smart contracts, allowing developers to build decentralized applications.

  4. Scalability:

    • Bitcoin: Suffers from scalability issues due to its PoW mechanism.
    • Ethereum: Has implemented various solutions like Sharding to improve scalability.

Visual Comparison

Here's a visual representation of Bitcoin and Ethereum: (center) Bitcoin_vs_Ethereum (center)

Further Reading

For a more in-depth understanding of blockchain technology, check out our guide on Understanding Blockchain.