What is Ethereum? How It’s Different from Bitcoin

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 Introduction

Ethereum and Bitcoin are two of the most well-known cryptocurrencies, but they serve different purposes and operate on different principles. While Bitcoin was created as a digital alternative to money, Ethereum expands blockchain technology to support decentralized applications. In this blog, we will explore Ethereum, its key features, and how it differs from Bitcoin.



What is Ethereum?

Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It was proposed by Vitalik Buterin in 2013 and launched in 2015. Unlike Bitcoin, which primarily functions as a digital currency, Ethereum provides a programmable ecosystem that allows developers to create various blockchain-based applications.

Key Features of Ethereum:

  1. Smart Contracts – Self-executing contracts with predefined rules.
  2. Decentralized Applications (DApps) – Applications that run on the Ethereum blockchain without a central authority.
  3. Ethereum Virtual Machine (EVM) – A computing engine that processes smart contracts.
  4. Ether (ETH) – The native cryptocurrency used for transactions and computational services.

How is Ethereum Different from Bitcoin?

Feature

Bitcoin

Ethereum

Purpose

Digital currency

Smart contract platform

Founder

Satoshi Nakamoto

Vitalik Buterin

Blockchain Type

Transaction-focused

Programmable blockchain

Consensus Mechanism

Proof of Work (PoW) (formerly)

Proof of Stake (PoS) (Ethereum 2.0)

Block Time

~10 minutes

~12-15 seconds

Supply Limit

21 million BTC

No fixed supply

Primary Use

Store of value, transactions

Smart contracts, DApps, DeFi



Why is Ethereum important?

Ethereum is often referred to as the "world computer" because it allows developers to create decentralized applications without intermediaries. It is widely used in:

  • Decentralized Finance (DeFi) – Lending, borrowing, and trading without banks.
  • Non-Fungible Tokens (NFTs) – Unique digital assets representing ownership.
  • Gaming and Metaverse – Blockchain-based gaming economies and virtual worlds.





Conclusion

While both Bitcoin and Ethereum operate on blockchain technology, they serve different purposes. Bitcoin is mainly a decentralized currency, whereas Ethereum is a full-fledged ecosystem for blockchain applications. As Ethereum continues to evolve with upgrades like Ethereum 2.0, it is set to further revolutionize the digital world.



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