Crypto Currency

What is the difference between Bitcoin and Ethereum?

It has been a very exciting year for Cryptocurrency with the market value of most major Cryptos increasing dramatically over…

It has been a very exciting year for Cryptocurrency with the market value of most major Cryptos increasing dramatically over the past 12 months. Investors saw the increasing adoption of Cryptocurrency as a payment method and decided to back its potential.

In addition to inflows of capital from investors keen to hold Cryptocurrency, substantial resources were also invested in the technical development of various Cryptocurrencies.

The underlying infrastructure needed to support the wider adoption and use of Cryptocurrency also benefited from increased levels of innovation and development throughout the year.

In the midst of all this activity two Cryptocurrencies in particular have attracted a lot of attention; Bitcoin and Ethereum. This has been for a variety of reasons, but it has resulted in these two Cryptos being the most widely held ones at present.

But what is the difference between Bitcoin and Ethereum? This article will take you on a short journey through the Crypto landscape to explain what these differences are.

 

Bitcoin

 

Bitcoin was the very the first Cryptocurrency. It was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

It operates on a peer-to-peer basis with transactions taking place between users directly, without an intermediary. Essentially people can send Bitcoins to each other directly thus transferring value to each other without having to go through a bank or other payment provider.

These transactions are verified by network nodes through the use of cryptography and recorded in a publicly available ledger known as a Blockchain.

 

What exactly is a Blockchain?

 

A Blockchain is a public record of all transactions in a particular system that have ever been executed. It cannot be tampered with or edited and is protected by cryptography.

A Blockchain thus stands as an unchangeable record of all transactions on a network, accessible to all participants. It is essentially a public record of all of the transaction which have taken place on a particular network, but it can also be much more.

 

Enter Ethereum!

 

Whilst Blockchain technology, in the beginning, was used as a method to simply record transactions between people using things like Bitcoin, it is now being developed further and used to support applications which are beyond just a digital currency like Bitcoin.

Ethereum is one of those advances. Launched in 2014, it is an open-ended decentralized software platform that enables smart contracts and Distributed Applications to be built and run. This is designed to happen without any downtime or interference from a third party by using Blockchain technology in a different way to Bitcoin.

Ethereum is not just a platform but also a programming language running on a blockchain. It is designed to help developers to build and publish distributed applications, not just transfer value between each other. It is far more than just another Cryptocurrency.

No one owns the Ethereum network itself, but the system runs it cannot be run for free. The network needs ‘ether’, a unique piece of code that can be used to pay for the computational resources needed to run an application or program. Ether is the token you see traded widely on Crypto exchanges.

The potential applications of Ethereum are wide-ranging and it is really only at the beginning of what could be a very exciting journey.

 

Difference Between Bitcoin and Ethereum?

 

While both Bitcoin and Ethereum are powered by the principle of a distributed ledger that is really where the major similarities end.

The difference between Bitcoin and Ethereum is their purpose. While Bitcoin is created as an alternative to regular money and is thus a method of payment and store of value, Ethereum is developed as a platform which facilitates peer-to-peer contracts and other software applications.

While Bitcoin and Ether, the token which runs on Ethereum, are both digital currencies, the primary purpose of Ether is not to be used to make payments but to assist developers in running distributed applications on the Ethereum platform.

 

Conclusion

 

As we have seen Bitcoin was designed to transfer value anonymously just like any other coin but Ethereum has much more advanced aims. It wants to be a platform which can be used to distribute other software applications and facilitate far more complex types of interaction than just the transfer for value.

Ethereum and its goals are more in line with the greater discussion around Blockchain based technology we can see today. Companies around the world see the Blockchain as something which can be used for much more than just value transfer.

It is certainly a very exciting time to be involved in this area. A public peer to peer ledger that cannot be tampered with offers up so many more possibilities than what it is being used for at present. Possibly far more than Satoshi Nakamoto could have envisaged all the way back in 2008.

 

More articles on cryptocurrency in our cryptocurrency section

 

 

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Crypto Currency

How much do you know about blockchain, cryptocurrency, and Bitcoin?

How much do you know about blockchain, cryptocurrency, and Bitcoin? mashable.com


How much do you know about blockchain, cryptocurrency, and Bitcoin? mashable.com
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Crypto Currency

The trailer for ‘CRYPTO’ just dropped, and cryptocurrency is good now

With all the exit scams, weird meat obsessions, and cantankerous fan-boy culture, the world of cryptocurrency is kind of a drag. And that’s without even touching on the current and persistent bear market.  But all that has changed, denizens of the internet. Cryptocurrency is good now, and we owe it all to the trailer for…


With all the exit scams, weird meat obsessions, and cantankerous fan-boy culture, the world of cryptocurrency is kind of a drag. And that’s without even touching on the current and persistent bear market. 

But all that has changed, denizens of the internet. Cryptocurrency is good now, and we owe it all to the trailer for the upcoming crypto-themed action flick starring none other than Snake Plissken himself. Say hello toCRYPTO, the film that, like its eponymous subject matter, features a bunch of idiots fighting over bullshit and terrible security practices. 

The trailer for the film, featuring an appropriately bedraggled Kurt Russell, hit the internet on March 11 and oh boy did it get our blood flowing. Go ahead and take a peek. We’ll wait. 

Breathtaking, right? Did you take a moment to bathe in the reflected glory of Luke Hemsworth and Alexis Bledel. Yes? Good, let’s move on.

The story, as much as there appears to be one, follows an anti-money laundering expert’s trip to small town America and a subsequent run in with the Russian mob. But put that aside for a moment, and let’s focus on the verisimilitude of the thing. 

It can only go up.

It can only go up.

Image: screenshot / “crypto”

From the amazing file labeling system (hello “KICKBACKS”), to the apparent Coinbase knockoff DELTA COIN listing bitcoin cash at $983.74 (which, LOL),CRYPTOproves that the true cryptocurrency

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Crypto Currency

9 Questions for Facebook After Zuckerberg’s Privacy Manifesto

presented an entirely new philosophy. For 15 years, the stated goal of Facebook has been to make the world more open and connected; the unstated goal was constructing a targeted advertising system built on nearly infinite data. Yesterday, though, Zuckerberg pronounced that the company is reversing course. The social network of the future won’t be…


presented an entirely new philosophy. For 15 years, the stated goal of Facebook has been to make the world more open and connected; the unstated goal was constructing a targeted advertising system built on nearly infinite data. Yesterday, though, Zuckerberg pronounced that the company is reversing course. The social network of the future won’t be one where everyone connects openly together, as in a town square; it will be one where more connections happen one to one, as in a living room. Instead of data permanence, data will disappear.

Facebook isn’t putting the current platform—worth roughly half a trillion dollars—in the garbage disposal. As Zuckerberg made clear in a Wednesday afternoon interview with WIRED, Facebook as we know it now will still exist. But it will change. And there will also just be something new.

It’s unclear the extent to which Facebook will ultimately push users toward privacy, and in what exact ways. But Zuckerberg controls Facebook, and his manifesto will make its gears start to turn in different directions. As that begins, here are nine important questions the company will have to think through.

1. Facebook knows how to make money in the town square. How does it make money in this new living room?

Private, encrypted messaging is hard to monetize. In our interview, Zuckerberg demurred when asked what the new business model will be after clamping down on the data firehose. The company would, he said, build the product first and figure out the financials later. Facebook does have nascent efforts in commerce and cryptocurrency, but there’s no question that figuring out revenue on the new platform will be a hard problem for Dave Wehner, Facebook’s chief financial officer. A former Facebook employee told me last night, “Mark is like a cartoon character who walks through a bunch of dangerous situations and always comes out on top. Dave is the guy running behind him catching the cat, stopping the ladder from tipping, deflecting the flying axe with a manhole cover.”

2. What does this do to safety on the platform?

Facebook rightly faces endless criticism for all the data it collects. But there are benefits to data collection as well. It can help stop bullies, or even potential suicides. Once those communications become private, Facebook no longer has the same powers to track and moderate. The public—from the media, to nonprofits, to academics, to individuals, to the government—also uses the public nature of Facebook to track bad behavior. If Russian intelligence operatives had just used private encrypted messaging to manipulate Americans, would they have been caught? As Facebook knows from running WhatsApp, which is already end-to-end encrypted, policing abuses gets ever harder as messages get more hidden.

In our interview, Zuckerberg explained that this, not fears about the business model, is what keeps him up at night. “There is just a clear trade-o

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Crypto Currency

Cryptography experts are already laughing at ‘Facebook Coin’

Facebook’s rumored cryptocurrency project hasn’t even launched, and yet it’s already a punchline for the tens of thousands of security professionals, cryptographers, and researchers gathered at the annual RSA conference.  On March 5, in the San Francisco Moscone Center, the hotly anticipated Cryptographers’ Panel met to discuss the future of cryptography, the internet, and e-commerce.…


Facebook’s rumored cryptocurrency project hasn’t even launched, and yet it’s already a punchline for the tens of thousands of security professionals, cryptographers, and researchers gathered at the annual RSA conference. 

On March 5, in the San Francisco Moscone Center, the hotly anticipated Cryptographers’ Panel met to discuss the future of cryptography, the internet, and e-commerce. Of course cryptocurrency came up, with a mention of the so-called Facebook Coin drawing perhaps the biggest laugh of the talk. 

Speaking of the problems inherent in putting even great research ideas into practice, panelist and cryptography expert Paul Kocher (known for, among other things, co-discovering Spectre) told attendees that the blockchain only makes things trickier. 

“[The] idea of combining Bitcoin’s theft mitigation and Facebook’s privacy seems particularly toxic for users.”

“When you add the froth of blockchain into there, these just sort of things that seem crazy just keep amplifying,” he explained. “I think the latest one that I saw is one where you can take Bitcoin where you can lose your money, Facebook you can lose your privacy, and now t

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