Virtual Currencies: Ethereum or Bitcoin – which is better?
Ethereum and Bitcoin are virtual currencies or crypto-currencies which are based on high speed of transaction at low cost.
The absence of central ledger, peer-to-peer network sharing in online mode and better features make a solid business case for the use of crypto-currencies.
Here is a quick comparison between Ethereum and Bitcoin, based on block chain technology features, novel usage method, speed, accuracy and transparency.
- The transaction time is faster in Ethereum based on blockchain time of 14 to 15 seconds compared to Bitcoin’s 10 minutes. The implementation of ghost protocol in blockchain application in Ethereum facilitates faster interaction in Ethereum.
- Ethereum has more robust economic model than Bitcoin, where Bitcoin block rewards halve every 4 years while Ethereum releases the same amount of Ether each year ad infinitum.
- The costing model in Ethereum is built to account transactions, depending on their computational complexity, bandwidth use and storage needs. This costing model in case of Ethereum is called Gas in Ethereum and is limited per block, where as in Bitcoin, it is limited by the block size.
- Ethereum offers better programming flexibility through availability of its own Turing complete internal code… where a Turing-complete code means that given enough computing power and enough time… anything can be calculated. The same cannot be achieved with Bitcoin.
- Ethereum is crowd funded and it is planned that 50% of the coins will be owned by miners in year five. In case of bitcoins, early miners own most of the coins that will ever be mined.
- Ethereum does not approve of centralized pool mining, even though its Ghost protocol rewards stale blocks, since there is no advantage to being in a pool, in terms of block propagation.
- Ethereum is built and programmed to employ a memory hard hashing algorithm called Ethash that is against protests against use of ASICS and encourages de-centralized mining by individuals using their GPU’s.
To learn more about Ethereum, check out the following video: