58 Finance Monthly. Inve s tmen t 3. Borderless Transactions The beauty of Bitcoin is that it knows no borders. Whether you’re sending money to a friend in another country or paying for goods and services online, you can use Bitcoin to make borderless transactions with ease. Ethereum’s Use Cases Ethereum was created as a decentralised platform that runs smart contracts. Its use cases include: 1. Decentralised Applications (dApps) dApps are applications that run on the Ethereum network. They are often compared to traditional apps, but they are more secure and decentralised. 2. Initial Coin Offerings (ICOs) ICOs are a popular way to raise funds for blockchain projects. They involve selling tokens in exchange for Ether. 3. Smart Contracts A smart contract is a self-executing contract that you can use to automate transactions or create decentralised applications. This type of contract is based on a set of predetermined conditions, which are then enforced by the code of the contract. 4. Decentralised Finance (DeFi) DeFi is a growing sector that refers to the use of blockchain technology to provide financial services. This includes lending, borrowing, and trading platforms. 5. Tokenisation You can use Ethereum to tokenise assets such as real estate or art. This allows for fractional ownership and more liquidity. As you can see, both Bitcoin and Ethereum have different use cases. While Bitcoin is mostly used as a store of value or for P2P payments, Ethereum is used for a variety of purposes including dApps, ICOs, smart contracts, and DeFi. How Immutable are Bitcoin and Ethereum? Another key difference between Bitcoin and Ethereum is immutability. Immutability refers to the ability of a blockchain to resist changes to its data. Bitcoin is considered to be immutable because it is incredibly difficult to change the data on the Bitcoin blockchain. This is because Bitcoin is powered by proof-of-work (PoW), which makes it very secure. Ethereum is also considered to be immutable. However, there have been some instances where the Ethereum network has been forked to fix critical issues. For example, the DAO hack occurred in 2016 and led to a hard fork of the Ethereum network. Nonetheless, Ethereum’s immutability is still debated by some in the crypto community. What is the Difference between Bitcoin and Ethereum Mining? Another key difference between Bitcoin and Ethereum is mining. Mining is the process of adding transaction records to a blockchain. Miners are rewarded for their work with crypto tokens. Bitcoin mining is done using specialised ASIC chips. These chips are designed specifically for mining Bitcoin and are very efficient. Ethereum mining, on the other hand, you can do using GPUs. This makes it more accessible to hobbyists and small-scale miners. What is the Difference between Bitcoin and Ethereum Blocks? A block is a group of transactions that have been verified and added to a blockchain. Each block contains a unique hash, which links it to the previous block. The main difference between Bitcoin and Ethereum blocks is their size. Bitcoin blocks are limited to 1 MB in size, while Ethereum blocks can be up to 2 MB in size. This is due to the different ways that each blockchain handles data. What is the Difference between Bitcoin and Ethereum Transactions? Bitcoin and Ethereum transactions are similar in that you need to verify both to add to the blockchain. However, there are some key differences between the two. The main difference is that Ethereum transactions can contain data, while Bitcoin transactions cannot. This is due to the different designs of each blockchain. Ethereum’s design allows for more flexibility, which has led to its popularity for dApps and smart contracts. What are the Pros and Cons of Bitcoin and Ethereum? Now that you know the key differences between Bitcoin and Ethereum, let’s take a look at the pros and cons of each. Bitcoin Pros Ready to learn about the many pros of bitcoin? Let’s look at them now: 1. Security If security is your top priority,
RkJQdWJsaXNoZXIy Mjk3Mzkz