#BTCvsETH
Bitcoin (BTC) vs. Ethereum (ETH): A Quick Comparison
Both Bitcoin and Ethereum are leading cryptocurrencies, but they serve different purposes and have unique features. Here's a clear breakdown:
🔹 1. Purpose
Bitcoin (BTC):
Created as a decentralized digital currency. Its primary goal is to be a store of value and a medium of exchange, like "digital gold."
Ethereum (ETH):
Built as a platform for decentralized applications (dApps) and smart contracts. ETH is the native currency used to power the Ethereum network.
🔹 2. Technology
Uses a simple scripting language mainly for peer-to-peer transactions.
Uses a Turing-complete language (Solidity), allowing for complex programmable transactions (smart contracts).
🔹 3. Supply
Fixed supply of 21 million coins. It’s deflationary by design.
No fixed supply. The Ethereum community has introduced burn mechanisms (like EIP-1559) to reduce inflation over time.
🔹 4. Consensus Mechanism
Uses Proof of Work (PoW) for security and consensus.
Originally used PoW but transitioned to Proof of Stake (PoS) with Ethereum 2.0 (The Merge in Sept 2022), which is more energy-efficient.
🔹 5. Speed & Scalability
Processes ~7 transactions per second (TPS); scalability solutions like Lightning Network are in development.
Handles ~30 TPS (on the base layer); aims to scale massively with Layer 2 solutions and sharding in future upgrades.
🔹 6. Ecosystem & Use Cases
Primarily used as digital money, a hedge against inflation, and a store of value.
Foundation for NFTs, DeFi, DAOs, gaming, and more—Ethereum has a larger development ecosystem.
🔹 7. Market Position
First and largest cryptocurrency by market cap. Seen as the most secure and trusted.
Second-largest crypto, leading in innovation and development activity.
