The basic difference between Ethereum and Bitcoin

According to ethereum.org (the official website of the Ethereum organization), Ethereum is a decentralized platform that can run smart contracts, ie applications that can run on their own according to programming without any downtime, censorship, fraud or interference from other parties.

Difference between Ethereum and Bitcoin

Like Bitcoin, Ethereum is a publicly distributed blockchain network. Although there are many technical differences between Bitcoin and Ethereum, the most important differences are their purpose and function. Bitcoin offers a peer-to-peer electronic money system for Bitcoin payments or transfers. While Ethereum focuses its blockchain to run a decentralized program, including one of the payments or transfers Ether.

Dr. Gavin Wood (co-founder of Ethereum) explained that the main function of Bitcoin is as a currency, where the currency is an application of the blockchain. But there are still many other types of applications that can be run on a blockchain.

As an illustration, email is one application that can be run on the Internet, but there are still many other application functions that can be run on the Internet.

Buy Ethereum Using Other Crypto

If you already have another cryptocurrency like Bitcoin (BTC), you can buy Ethereum (ETH) in the following ways:

1. Buy Ethereum using another crypto at Binance

Open an account at Binance.com, then you can buy Ethereum using crypto that you already have.

2. Switch your crypto to Ethereum on Changelly

You can directly exchange crypto that you have with Ethereum on the Changelly.com website.

If you are in polands You can buy Ethereum / Ether on the tokens.net website. tokens provides affordable ethereum price, you will also get a US $ 10 bonus in the form of Bitcoin, if you buy a cryptocurrency worth US $ 100 or more.

Example Application Ethereum

So now we have learned that Bitcoin is mainly used to transfer electronic money peer-to-peer. While Ethereum can be used to run any application, including one of them is electronic money transfers – in the form of Ether and other Ethereum tokens. Examples of such applications include:

• Exchange cryptocurrency platform. Examples: Kyber and 0x.

• The futures market where the general public can vote in order to predict future events. Examples: Gnosis and Augur.

• Gambling market. Example: Etheroll and vDice

• Platform to combine the strengths of hundreds or even thousands of computers in the world, to do a joint activity that requires a lot of computing power, such as animated graphics rendering. Example: Golem.

• Payment system. For example OmiseGo, TenX and TokenCard.

• Platform for managing companies ranging from accounting, voting, salary systems and others. For example Aragon.

• Platform for online advertising. Example: BAT (Basic Attention Token)

Creator of Ethereum: Vitalik Buterin

Ethereum was first created by Vitalik Buterin, who previously worked in Bitcoin Magazine – a leading media among cryptocurrency lovers. The Ethereum project fund was obtained from a crowdsale that sold Ether-shaped shares. This process is also called the ICO (Initial Coin Offering). Similar to IPO (Initial Publisher Offering), but ICO distributes / sells digital currency that functions like a company stock.

The Safest Way to Store Ether

There are many ways to save your Ether. But it must be remembered, if you don’t hold a private key from your wallet, then you don’t have control of your Ether.

The safest way to save your Ether, is to use hardware wallets like Ledger and Trezor.

• Ledger Nano S is one of the most famous hardware wallets among cryptocurrency lovers. The price was not too expensive.

• Ledger Blue is an attractive choice with a better user experience and a larger screen size, if you have more funds to buy your Ether hardware wallet.

• Trezor is one of the first pioneers and also the safest Ether hardware wallet.