Similarities between Ethereum and Bitcoin

By Chetna Phour

Because of the crypto boom of 2017, people become aware of the existence of Bitcoin and other cryptocurrencies. By market capitalization, Bitcoin and Ethereum are the two most valuable cryptocurrencies. Bitcoin (BTC) was the first cryptocurrency, and a few years later the improved version of Bitcoin was launched which is known as Ethereum (ETH), so there are lots of similarities between Ethereum and Bitcoin. 

Similarities between Ethereum and Bitcoin

Though Ethereum and Bitcoin are the two different cryptocurrencies, there are certain similarities between the top cryptocurrencies, Ethereum and Bitcoin such as 

Programming: The programming of Bitcoin and Ethereum is almost the same.

Mining Procedure: Mining means how transactions are processed or validated on the blockchain. Bitcoin and Ethereum both the coins use proof of work mining. At the time when Bitcoin and Ethereum were created, all the cryptocurrencies handled their transactions with proof of work. Currently not all the cryptocurrencies use proof of work. Some of the cryptos even do not require mining. If you want to know the mining process of Bitcoin and Ethereum, check our posts How Bitcoin Mining Works? And Ethereum Mining Explained.

Scaling problem: Both coins have scaling issues. Bitcoin and Ethereum both are the oldest cryptocurrencies are very popular. But both the cryptos have a problem with their increasing popularity and use. As too many people around the world are using them, so their transaction speed became slower and transaction costs became higher. To handle the issue, both the cryptocurrencies used their own solutions. Their scaling solutions even make them more different.

Distributed Ledger Technology (DLT): Both the cryptocurrencies use Distributed Ledger Technology called blockchain. Know more about the Difference between Blockchain Technology and Distributed Ledger Technology.

Open Blockchain System: Ethereum and Bitcoin both are open blockchain systems. They sit on their Peer-to-Peer (P2P) networks. For both the cryptocurrencies anyone can view the transaction and participate. Both the network require tokens to access. Because of the open blockchain system, anyone can contribute code to the underlying technology or can build higher-level applications. Both the systems are built using open source software, and this software is maintained by volunteers globally.

Digital Payment: Ethereum and Bitcoin both are the digital currencies and can be used to make digital payments.

Bitcoin and Ethereum both are valuable: In terms of market capitalization, Bitcoin and Ethereum are the number one and two cryptocurrencies respectively. Both the coins are the most valuable coins in the world.

Popularity: Though currently the market is flooded with hundreds of new cryptocurrencies and tokens, but Bitcoin and Ethereum remain widely used. In spite of the increasing competition from other digital assets, both the cryptocurrencies maintained their popularity.

Both are old: Bitcoin and Ethereum are the oldest cryptocurrencies. When the digital asset market gained the popularity lots of other coins and tokens are launched. Some of the new cryptocurrencies even outperform Bitcoin and Ethereum in various ways. Some of the new coins have extra feature, quicker to transfer, and have lower fees. Though some new coins are better than Ethereum and Bitcoin but both of these coins maintained their popularity and remained the top cryptocurrencies in the world.

Bitcoin and Ethereum are the two biggest giant of the cryptosphere. If you are planning to invest in Bitcoin anonymously check out our post How to Buy Bitcoin without ID.