Presently, there are more than 6,000 types of digital currencies that exist in different cryptocurrency exchanges. And if we talk about the major ones then every trending coin carries its own unique traits which drive its growth in the cryptocurrency markets.
Further, with the help of digital currencies' blockchain system analysis, we can absolutely track the overall transaction pattern of a particular crypto coin and then determine the characteristics of the biggest wallets which hold more than one form of crypto coins. Moreover, here we can also acquire information about different crypto coins in what manner they compliment as well as variant from each other which literally creates a dynamic cryptocurrency ecosystem.
Now when we take a brief look at the transaction value of all cryptocurrencies during quarter one in 2021 then there are two major digital coins who absolutely got the limelight by having the highest transaction volume. The one is Bitcoin with $623 billion transaction volume in just one quarter and the second one is Ethereum with $840 billion.
Bitcoin - Regarded For Long Term Benefits:
It was the first ever digital coin launched in January, 2009. The idea of introducing this kind of coin was created by the mysterious Santoshi Nakamoto simply on a white paper. The intention behind introducing this kind of online currency was to offer the promise of providing a certain level of security without involving any central authority just like in other government authorized securities.
However, there is no physical existence of this cryptocurrency. It only exists at digital platforms where the investors can view the public ledgers for associated balances which are cryptographically secured. Now when we talk about the success of bitcoin, it came out as the most successful digital coin in its early efforts. Due to this reason, it later became known as the predecessor which gave way to all other cryptocurrencies to grow over the past decade.
Ethereum: Known As The Currency of Innovation:
By the time Ethereum was launched in July 2015, the blockchain technology had already been developed to a certain level where it was being used for creating applications that just go beyond enabling the online currency. At present, Ethereum is the most well established and largest open-ended distributed software platform.
The Ethereum network empowers the arrangement of decentralized apps as well as smart contracts which are required to be built and run without any fraud, downtime, interference and moreover control by third parties. Further, the Ethereum blockchain technology works on its own programming language that enables developers to build and run further blockchain distributed applications.
Bitcoin Vs Ethereum: Key Difference
Although both these digital currencies i.e. Bitcoin and Ethereum follow the blockchain network system where the cryptography and distributed ledgers are their fundamental principles, yet they are so much different from each other in many technical terms.
The primary difference between both these currencies lies in their coding. Here Ethereum follows the executable code for carrying out secured transactions whereas Bitcoin generally follows the simple network where data is affixed that is only used for keeping transactional notes.
The next difference can be measured in terms of block time for both digital currencies. Here Ethereum works on Ethash algorithm which executes the transaction completion within seconds. On the other hand, Bitcoin uses the SHA-256 algorithm which usually takes minutes for it to execute the complete translation.
The next difference which can be figured out in both these currencies is determining their overall aim. As we already know, Bitcoin has already set a benchmark to be launched as the first ever crypto currency. However the main purpose behind launching this kind of currency was to provide alternatives to the public against other well authorized and governed national currencies. Hence it was all aspired to be used as a store of value and in the form of medium of exchange as well.
However the intention behind introducing Ethereum was certainly different. Ethereum was launched as a well planned platform for the purpose of enabling programmatic and immutable contracts as well as applications via its own currency. Although Ethereum is also considered as a digital currency just like the Bitcoin, it was certainly not meant to act as an powerful alternative for the existing monetary system. Instead the main focus behind the innovation of Ethereum coin was to monetize and facilitate the operation of Ethereum decentralized applications platform and perfect execution of smart contracts as well.
Here the above discussed cryptocurrency ecosystem comparison absolutely reveals the exact story of the top two crypto coins which are literally bigger than any investing strategy or moreover one asset. Both platforms use well-defined cases as they are the most widely used crypto assets. However you can consider Bitcoin at a bit higher level in terms of long term investment and Ethereum as the better one due to the reason it is frequently used as well as traded to power innovative new DeFin (Decentralized Finance) platform.