Skip to main content

THE DIFFERENCES OF BITCOIN AND ETHEREUM

The Cryptocurrency Ecosystem

Cryptocurrencies are a type of decentralized digital currency that uses cryptography to ensure the security of transactions and control the creation of new units. Bitcoin has been a significant advance in the world of finance, being the first best-known and widely used cryptocurrency.

The Details of a Bitcoin.

The basis of a Bitcoin is a technology called blockchain. It is a public, distributed ledger that records all Bitcoin transactions in a verifiable and permanent manner. Each block contains a set of transactions and links to the previous block using cryptography.

How Does Bitcoin Work?

Bitcoin uses a consensus algorithm called proof of work (PoW). This implies that miners must perform complex calculations to validate and add a block of transactions to the blockchain. This process consumes a large amount of energy and ensures the security of the network.

The limits of Bitcoin?

Bitcoin has a limited supply. The total number of Bitcoins that can be created is 21 million. This is because the Bitcoin protocol has a issuance feature that halves the miners' reward approximately every four years in an event known as a "halving." The last halving occurred in May 2020. As for when the next Bitcoin halving event could take place, many dare to say that it is expected to occur on May 4, 2024.

Is Bitcoin Safe?

The Bitcoin network is highly secure due to the proof-of-work process and the decentralized nature of the blockchain. To alter a block on the chain would require an enormous amount of computing power and energy, making Bitcoin resistant to tampering.

Invest in Bitcoin?

Bitcoin is used as a medium of exchange, store of value and in some cases as a form of investment. Some companies and merchants accept it as a form of payment, although until 2020 its use as an everyday currency is still under development.

Bitcoin Wallets?

The function of a wallet is to provide a place to store cryptocurrency. Users should know the best security practices to protect their Bitcoins. This means that we must first know which wallet is the most secure on the market. Coinbase - Binance - Metamask are the wallets most recommended by expert users, it is important to follow their advice. Choosing the wrong wallet means that your data and cryptocurrencies do not have a safe haven.


We will compare Bitcoin - Ethereum

Bitcoin (BTC): It has a relatively slower transaction processing speed compared to Ethereum. On the Bitcoin network, a block of transactions is confirmed approximately every 10 minutes. Bitcoin primarily focuses on being a store of value and medium of exchange. Their main focus is security and decentralization, which can sometimes lead to slower confirmation times.

Ethereum (ETH): Has a significantly faster block transaction processing speed. On the Ethereum network, a block is confirmed approximately every 13-15 seconds. Ethereum, on the other hand, is designed to be a platform for smart contracts and decentralized applications (DApps). Therefore, it has a more agile approach in terms of transaction speed.

Where to buy a cryptocurrency like Bitcoin or Ethereum

  • Exchanges: Platforms such as Coinbase, Binance, Uniswap and others facilitate the purchase, sale and trading of Bitcoin and other cryptocurrencies. These platforms play an important role in liquidity and price formation.
  • Financial services companies: Some financial companies may offer products and services related to Bitcoin, such as cryptocurrency investment funds, custody services, among others.
  • Technology companies: Companies like Square (which owns Cash App, a popular platform for purchasing Bitcoin) or PayPal (which has enabled the buying and selling of Bitcoin on its platform) can have an impact on Bitcoin adoption and access .

Comments

Post a Comment

THANK YOU FOR COMMENTING ON HASHWORDING

Popular posts from this blog

BRIDGE Ethereum (MetaMask) Solana (Phantom) Binance (BNB Smart Chain)

FIRST EVIDENCE COLLECTIONS. It is essential to note that when using a bridge, you must ensure that your 1 MetaMask and 2 Phantom wallets are connected to the mainnet and not a testnet. This is crucial to ensure that the transfer is made with real assets and not tokens that have no real value in the market. Some bridges may have options to select the specific network you wish to operate on. Make sure you choose the mainnet corresponding to the blockchain you are transferring your assets to. EXAMPLE. RED SOLANA SENDS TO THE BNB SMART CHAIN NETWORK. This means that you must send a token compatible with the BNB Smart Chain Network. If you send a token that only exists on one network (Solana) and not another (BNB Smart Chain), the token is lost during the transaction. It is extremely important that the token exists on both networks. Always remember to double-check your wallet and bridge settings before making any transactions to avoid potential errors and ensure funds move correctly between...
Post a Comment
Read more »

HOW TO KNOW IF A CRYPTOCURRENCY IS OUT OF MARKET OR OVER-THE-COUNTER (OTC)

TO ASCERTAIN WHETHER A CRYPTOCURRENCY IS "OVER-THE-COUNTER" (OTC), IT IS CRUCIAL TO PAY ATTENTION TO SPECIFIC KEY CHARACTERISTICS: Low Trading Volume: OTC cryptocurrencies tend to have significantly lower trading volume on public exchanges compared to more liquid coins. Lack of Liquidity on Public Exchanges: The absence of liquidity on public exchanges can indicate that a cryptocurrency is primarily traded through OTC channels. Absence of Visible Order Book Offers: If there are few or no visible offers on the public order books, the cryptocurrency may be primarily traded OTC. Large Trades and Few Transactions: OTC cryptocurrencies often involve large and less frequent transactions compared to more liquid cryptocurrencies. Private Agreements: OTC transactions are often conducted through private agreements between buyers and sellers, without being visible on public order books. Lack of Pronounced Volatility: OTC cryptocurrencies may experience fewer price fluctuations as they a...
Post a Comment
Read more »

YOU CAN CREATE YOUR DECENTRALIZED WEBSITE BY PURCHASING NFT DOMAINS.

The reason these external solutions are useful is that they provide a friendlier and easier to remember way to identify WEB or Bitcoin addresses. Instead of remembering long alphanumeric strings, users can use more familiar domain names. Furthermore, being decentralized, these systems do not depend on a central authority and are less susceptible to censorship or interference from third parties. To Acquire your domain, go to Unstoppable Domains and choose the domain you like the most .www .crypto .nft .wallet .polygon .dao .blockchain .bitcoin .eth DECENTRALIZED DNS DOMAINS: Are systems that operate on blockchain technologies and allow the assignment of domain names in a decentralized manner and without depending on a central authority or intermediary. Instead of relying on traditional domain registrars, decentralized DNS domains use smart contracts and registries on a blockchain to manage the assignment and ownership of domain names. WHAT DECENTRALIZED DNS DOMAINS ARE FOR: Censorship ...
Post a Comment
Read more »