#BTCvsETH

Bitcoin and Ethereum are the two leading cryptocurrencies, both relying on blockchain technology but differing significantly in their purpose, technology, and functionality.

Here's a breakdown of the key differences:

1. Purpose

Bitcoin (BTC): Primarily functions as a decentralized digital currency, aspiring to be a medium of exchange and a store of value, often referred to as "digital gold".

Ethereum (ETH): Aims to be a programmable platform for decentralized applications (dApps), smart contracts, and Web3 infrastructure. Ether (ETH), its native currency, fuels these operations and is also used as a digital currency.

2. Technology

Consensus Mechanism:

Bitcoin: Uses a Proof-of-Work (PoW) system, where miners compete to solve complex puzzles to validate transactions and add blocks to the blockchain. This process is energy-intensive.

Ethereum: Has transitioned from PoW to a Proof-of-Stake (PoS) system, where validators stake their ETH to validate transactions. This system is more energy-efficient and scalable.

Smart Contracts and dApps:

Bitcoin: Has limited smart contract functionality and requires external integrations to expand beyond basic capabilities.

Ethereum: Natively supports smart contracts and decentralized applications, making it a platform for a wide range of use cases like DeFi, NFTs, and more.

Transaction Speed and Cost:

Bitcoin: Slower transaction times (approx. 10 minutes per block) and potentially higher fees due to block size limitations and congestion.