So what are the biggest differences between Ethereum and Bitcoin?
- Smart Contracts – the main difference between Ethereum and Bitcoin is that Ethereum allows for smart contracts and DApps instead of just payments.
- Faster Transactions – the time for a single Ethereum block to be mined is measured in seconds vs. minutes (Bitcoin).
- Purpose – Bitcoin is more like a store of value, whereas Ethereum allows decentralised apps to be developed on it’s platform.
- Functionality – Ethereum’s technology is designed to allow DApps and smart contracts for developers. Ethereum is more versatile than Bitcoin in this respect.
- Proof Of Work Vs Proof Of Stake – Whilst Bitcoin and Ethereum are both currently mined using Proof Of Work, this could change soon.
Vitalik Buterin (creator of Ethereum) has actually released details of the Casper Protocol, which would integrate Proof Of Stake instead.