There are many different cryptocurrencies out there, each of which hasits benefits.However, there is no escaping that the two most popular are Ethereum and Bitcoin. Ethereum is currently the second most popular form of crypto out there, with Bitcoin taking the lead, as has been the case for over a decade now. The two are very similar to one another, but there are also some major differences too. It’s important to keep these differences in mind when you are choosing which currency you would be most interested in investing in yourself.
Keeping Up to Date on Currencies
One of the major differences is a difference that also continues to fluctuate, which is the value of both forms of currency. Bitcoin goes through peaks and troughs, as does Ethereum, and again, if you are interested in investing in them, then you must stay on top of these values. There are several ways you can do this, but one of the most effective is by heading over to helpful conversion sites, like OKX.com, which can clearly outline the value of different forms of currencyBe sure to keep up to date with these sites to stay on top of one of the key differences between the two forms of currency.
Proof of Work vs Proof of Stake
One of the main differences is that Bitcoin uses a protocol which is known as Proof of Work (also referred to as PoW). This means network nodes can agree on the state of all information, which prevents some attacks on the network. Ethereum operates differently on a Proof of Stake basis (PoS), which is a set of interconnected upgrades which allow Ethereum not only to be more secure, but also more sustainable.
The two forms of crypto also have different purposes. Sure, they are variations of digital currency, but the primary purpose for both is not to establish themselves as an alternative money system. It is used to facilitate and monetize the way smart contracts work, dApps, and then provide other blockchain solutions to similar platforms that people frequently use.
The Ethereum ecosystem continues to grow due to the fact there is an increased popularity of the likes of dApps in the finance sector. Not only that, but more people are also using Defi in the art world, thanks to the rise in the popularity of NFTs. Therefore, we are likely going to see Ethereum continue a very similar trajectory moving forward.
On the other hand, Bitcoin is changing to upgrade. There is work happening on the Bitcoin Lightning Network, which is being used to add a second layer of protection and wants to make it so that different transactions can happen off of the blockchain, which will speed up the whole network. As such, these two cryptocurrencies have very different futures ahead of them, but both look like they’ll be around for a long time to come, and will likely continue to gain in popularity.