Bitcoin and Ethereum are the two most widely held cryptocurrencies, but they are quite different in nature. According to the plan change of Ethereum blockchain, this difference will become even greater in the coming months. Learn the difference between the two most popular cryptocurrencies and how this may affect their future valuations.
What are Bitcoin and Ethereum?
The term cryptocurrency is a general term applicable to thousands of digital coins and tokens containing encryption features and related to blockchain technology. The two largest blockchain networks are Bitcoin and Ethereum, and the related local cryptocurrencies are Bitcoin (BTC-USD) and Ethereum (ETH-USD).
No one can own Bitcoin or Ethereum blockchain networks, because they are just a collection of private computers linked together through open source code. But anyone can own BTC or ETH as a potential investment.
BTC is the only digital cryptocurrency related to Bitcoin blockchain network.
ETH is the main operating cryptocurrency related to Ethereum blockchain.
Note: The Ethereum network allows many different tokens to operate on it to achieve different functions. ETH is the main token on the Ethereum blockchain, although there are hundreds of other tokens.
Bitcoin and Ethereum blockchain network
Bitcoin and Ethereum blockchain networks serve different purposes, just like coins and tokens running on them.
The Bitcoin blockchain network is intended to represent another decentralized currency system, independent of the major currencies issued and controlled by central governments around the world.
Ethereum blockchain aims to apply blockchain technology to a large number of decentralized financial (DeFi) applications of Web 3.0, such as promoting transactions of irreplaceable tokens (NFT), playing interactive games, and implementing “smart contracts”.
BTC and ETH cryptocurrency
Both BTC and ETH are decentralized peer-to-peer cryptocurrencies based on open source distributed ledger (blockchain) technology. Buying BTC or ETH in major crypto exchanges is almost the same process. But these two cryptocurrencies have very different purposes and values. People can distinguish them by distinguishing them, just as they can distinguish the stocks of two companies in different industries traded on major stock exchanges.
