Where Bitcoin sits on the virtual and investment throne of the cryptocurrency kingdom, Ethereum is the proverbial crown prince; trailing it in terms of value, the latter has excelled as a provider for developers, an asset for investors, and solution for major companies but how is it with bitcoin and ethereum vs bitcoin.
With Bitcoin being the dominant cryptocurrency on the market, Ethereum is no silver medal or young pretender, despite both its position behind BTC and being comparably young. Ethereum itself has gained a firm reputation as the 'king of smart contracts,' having been the pioneering blockchain behind them.
While a certain amount of what you'll hear on mainstream news outlets can often be simplistic news. We'll be digging into the wild and incredible world of smart contracts as we strive to answer the question - what is Ethereum?
It's certainly no exaggeration to call ETH a relatively young blockchain solution compared to Bitcoin. The latter was first introduced in 2008, while Ethereum was put forward as a solution in 2013, when its white paper was put forward to the community.
The first thinker and, effectively its creator was Vitalik Buterin, formerly one of the contributors and programmers behind Bitcoin Magazine, initially proposed Ethereum as a solution for developing apps that use blockchain. In some of the writings of Anthony Di Lorio:
"Ethereum was founded by Vitalik Buterin, Myself, Charles Hoskinson, Mihai Alisie, & Amir Chetrit (the initial 5) in December 2013. Joseph Lubin, Gavin Wood, & Jeffrey Wilke were added in early 2014 as founders."
Interestingly enough, the decision to establish Ethereum came from the fact that there was little agreement that Buterin could get out of the core development team and community from Bitcoin, so resolved to create a brand new solution for this purpose.
It's this that makes Ethereum stand out compared to other blockchains. With its white and yellow papers looking to simplify the process of leveraging smart contracts and blockchain for developers, who can then conduct transactions with other users using its native token 'Ether.'
By the time that the third version of Ethereum launched (Metropolis) in 2017, it was preceded with the establishment of the Enterprise Ethereum Alliance with 30 founding members and more than 150 enterprise members.
It's this element that makes Ethereum unique as well. While Bitcoin sets itself apart from centralized institutions, corporations were on the shopping floor when Ethereum was undergoing its crowdsale and the creation of EEA.
Organizations like JP Morgan, for example, were quick to actually implement the Ethereum blockchain in the creation of its own distributed ledger known as 'Quorum' shortly after.
Along with having this corporate support for EEA, Ethereum's use of smart contracts and accessibility as an open-source solution for dApp (Decentralised app) designers are what make it unique.
While Bitcoin sacrifices transaction speed, Ethereum is able to outperform Bitcoin in this way. With its ability to complete 15 transactions per second compared with Bitcoins 4.5.
And with the layer-2 solutions like the lightning network, and EIP's (Ethereum Improvement Proposals) introducing new and innovative token protocols. Ethereum is able to provide more flexibility for developers and users while offering improved scalability over time.
There are certain attributes of Ethereum that really deserve expansion, such as smart contracts, the layer-2 solutions, as well as just what kind of dApps Ethereum hosts as part of its public chain.