Ethereum
The name Ethereum is meant to refer to the hypothetical medium that allows light to travel. Initially described in a whitepaper by the programmer Vitalik Buterin in 2013; since then many changes have been applied to this crypto.
Core differences between Bitcoin and Ethereum
One of the main differences between Bitcoin and Ethereum is the ability of the latter network to run what is called “smart contracts”. These contracts are in essence computer programs or transaction protocols that are executed automatically. Further, they are meant to control legally relevant actions according to the terms of an agreement. Put more simply, it is a technological means of payment or transfer obligations of cryptos or other tokens.
The second one is that it is possible to create decentralized applications. These are meant to be open source, operating without centralized control, on a peer-to-peer network. They can range all the way from exchange and finance apps, to video game and gambling apps.
The third is that, while Bitcoin has a fixed supply cap and no more tokens will be created after it. Ethereum on the other hand has no supply cap.
And the fourth is that it is way faster. This is so because blocks are validated every 12 seconds, as opposed to the 10-minute speed of its rival.
Future
Ethereum 2.0 is to become a reality in the near future, this advancement will fully implement the proof-of-stake as a mechanism to ensure safety while being way more environmentally friendly and a lot less resource heavy than the proof-of-work method used by Bitcoin, as it requires a lot less computational power.
And it will also increase the current transaction rate, which is currently fifteen per second, to an estimated tens of thousands of transactions per second, thus exponentially increasing its usability as a payment method.
