Ethereum vs. Bitcoin: Understanding the Differences 🌐 🔹 Introduction to Bitcoin Bitcoin, the trailblazer of cryptocurrencies, was launched in 2009 by the enigmatic Satoshi Nakamoto. As the first digital currency, its goal was to replace traditional currencies by offering a decentralized means to transfer value. Transactions on the Bitcoin network are secured via cryptography and recorded on a public ledger known as the blockchain. 🔹 Introduction to Ethereum Introduced by Vitalik Buterin in 2015, Ethereum extends beyond being just a cryptocurrency. It's an open-source platform designed to facilitate peer-to-peer contracts and applications (DApps) without third-party interference, powered by its token, Ether (ETH). 🔹 Core Differences ✅ Purpose: Bitcoin serves as digital cash, a decentralized alternative to fiat currencies. Ethereum, however, provides a platform for executing smart contracts and DApps, aiming to decentralize more than just money. ✅ Technology: Bitcoin utilizes a Proof-of-Work (PoW) mechanism, requiring significant computational power. Ethereum originally used PoW but is transitioning to Proof-of-Stake (PoS) with Ethereum 2.0, enhancing energy efficiency and scalability. ✅ Scalability: Bitcoin processes about 7 transactions per second, while Ethereum can handle up to 30. Despite improvements, both face scalability challenges, though Ethereum is evolving with solutions like sharding. ✅ Supply: Bitcoin's maximum supply is capped at 21 million coins, whereas Ethereum does not have a maximum supply limit, potentially allowing for continuous production. ✅ Use Cases: Bitcoin is often viewed as 'digital gold', ideal for storing value. Ethereum's capability for smart contracts underpins many innovative applications like DeFi, NFTs, DAOs, and more, making it central to the digital asset revolution.