#SoftStaking؟
differences between Bitcoin (BTC) and Ethereum (ETH).
- *Purpose:*
- Bitcoin: Designed as "digital gold" for secure, peer-to-peer transactions and storing value, with a focus on simplicity, reliability, and fixed supply.
- Ethereum: A programmable blockchain for building decentralized applications (dApps), smart contracts, and DeFi projects, acting as a global computer.
- *Consensus Mechanism:*
- Bitcoin: Uses Proof of Work (PoW), a method that requires miners to solve complex mathematical puzzles to validate transactions and secure the network.
- Ethereum: Transitioned to Proof of Stake (PoS) in 2022, which significantly reduces energy consumption and allows validators to stake ETH.
- *Scalability:*
- Bitcoin: Handles around 5-7 transactions per second, with layer-2 solutions like the Lightning Network for faster transactions.
- Ethereum: Processes around 30 transactions per second, with upcoming upgrades like Pectra to improve scalability.
- *Supply:*
- Bitcoin: Fixed supply of 21 million coins.
- Ethereum: No fixed cap, but recent updates like EIP-1559 introduced a burn mechanism to partially offset inflation.¹
*Investment Considerations:*
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