ETH vs BTC

Ethereum vs. Bitcoin – What’s The Difference?

Bitcoin relies on blockchain technology and financial incentives to create a global digital cash system. There are several developments that allow users around the world to collaborate without the need for a central authority. Bitcoin enabled participants to agree on the state of a financial database in a trustless, decentralized environment by having each participant execute a program on their computer.

First-generation blockchains, such as Bitcoin, are commonly referred to as such. A lack of complexity in its design is a benefit when it comes to security. For the sake of security, it is deliberately inflexible. Indeed, Bitcoin's smart contract language is extremely limited, and it doesn't have a lot of room for non-transactional uses of the technology.

On the other hand, the second generation of blockchains is more powerful. In addition to financial transactions, these platforms allow for enhanced programmability. With Ethereum, developers may experiment much more freely with their own code and construct what we term Decentralized Applications (DApps).

In the second-generation of blockchains, Ethereum was the first to emerge, and it remains the most widely used to date. In many ways, it's like Bitcoin in that it can do a lot of the same things. Although the two are completely different on the inside, they each have their own advantages over the other when it comes to overall performance.