Bitcoin threatens Ethereum, how is it different from Bitcoin?

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Ethereum, the second-largest cryptocurrency (virtual currency) market cap, is hitting all-time highs every day, threatening the dominance of Bitcoin, the No. 1 market cap.

Ethereum is recording $3428, a 16.21% increase from 24 hours ago on CoinMarketCap, a global cryptocurrency (virtual currency) live broadcast site, as of 8:30 am on the 4th (Korean time).

As a result, the market cap of Ethereum reached $394.9 billion. This is about 40% of Bitcoin ($1 trillion).

At the same time, Bitcoin is recording $55,693, a drop of 4.15% from 24 hours ago. Accordingly, if this trend continues, there is a prospect that Ethereum will destroy the bitcoin’s shout.

To summarize the difference between Bitcoin and Ethereum in a word, Ethereum, a latecomer, is a more updated system than Bitcoin. However, safety is an evaluation that Bitcoin is more dominant.

Bitcoin started in 2009, while Ethereum started in 2015. It was developed by Vitalik Buterin from Russia.

Vitalik Buterin, founder of Ethereum.

Ethereum is a cloud computing platform or programming language based on blockchain technology.

Based on the fact that Buterin can record additional information such as contracts as well as currency transaction records on the blockchain, which is a core technology used in cryptocurrency, it constructs a distributed network using computing resources possessed by numerous users around the world. Using this platform, it created a system that records various information such as SNS, email, and electronic voting.

The biggest difference between Bitcoin and Ethereum is in the scope of application. While Bitcoin focuses on payment or transaction-related systems, that is, functions as currency, Ethereum provides scalability to transparently operate various applications such as contracts and emails, as well as transactions and payments.

In other words, it is a platform that allows anyone to create and use a decentralized application, called dApp (dapp) for short, not only for currency but also for other uses. The recently popular non-replaceable token (NFT) is also based on Ethereum.

One of the reasons for the recent surge in Ethereum is that Binance, the world’s largest cryptocurrency trading site, has announced that it will open an NFT market and is likely to use the Ethereum network.

Ethereum has the advantage of not only this, but also faster transaction and less power consumption than Bitcoin. In short, it is a network that greatly reinforces the shortcomings of Bitcoin.

However, stability is an evaluation that Bitcoin is more dominant. Ethereum was once stolen by hackers. On June 17, 2016, a hacking occurred, and about 3.6 million pieces, about 10% of Ethereum, were stolen.

In addition, it is a general evaluation that the bitcoin network only transacts cryptocurrency, whereas Ethereum has various functions, so the safety is lower than that of the bitcoin network.