Among all the wide mosaic of cryptocurrencies that exist today, Ether (ETH) and Bitcoin (BTC) are the undisputed leaders of the crypto world for several reasons that have made them preponderant agents of this new market and investors' favorites. Let's get to know a little more about these cryptocurrencies.
Let's talk about Bitcoin (BTC)
Created in 2008, by an individual or group of individuals, with the alias of Satoshi Nakamoto, it emerges as a disruptive proposal around the international financial system, whose main objective is the decentralization of person-to-person (P2P) financial operations
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The foregoing, based on blockchain technology that increases the security of transactions since this chain is inviolable and immutable. Blockchain is basically an open source ledger, to eliminate the need for a financial intermediary, call it a bank or government, to validate person-to-person transactions reducing costs and time.
His proposal also includes the establishment of a new financial system, in which people participate and validate it, waiting for the massive adoption of bitcoin as a means of payment, validated through the blockchain network by thousands of miners to provide certainty.
Let's talk about Ether (ETH)
The Ethereum Network emerged in 2015, created by the Russian-Canadian engineer Vitalik Buterin, who, unlike the creator of Bitcoin, does not hide his identity.
Buterin's proposal through his network includes that, in addition to continuing to use blockchain technology to provide security and validate transactions, the Ethereum network would serve as the basis for programmers to develop a whole range of decentralized financial services within it.
Nowadays, this network is one of the most often utilised for the creation of smart contracts, which aid in both the automation of more sophisticated processes like the selling of financial options and futures and simple person-to-person transactions.
Similarities between Ether and Bitcoin
- Both projects, one after the other, represent a challenge to the understanding of economics and finance as we conceive it today.
- Because to its inviolability and immutability properties, this technical instrument has been used by both BTC and ETH to secure transactions.
- Validation (miners). In both cases, the validation of the transactions depends on the participation of the members of their respective networks, who are known as miners, and who receive a certain amount of Ether or Bitcoin as a reward for each block validated and attached to the chain. , according to the case.
- In both projects, the intention of having a large and active network of participants to validate the transactions is to eliminate the need for an intermediary to validate these operations. This is called decentralization.
- Despite the fact that, according to their fundamentals, the ETH and BTC tokens were not created for speculation, they have gradually earned a place as unregulated financial assets with attractive returns for investors, but with a constant swing between their high lows. Price.
Differences between Ether and Bitcoin
- Vision and mission. While Bitcoin seeks to be, basically, a new means of payment that is globally accepted and endorsed by users, Ethereum has decided to go a step further, creating a network with the purpose of supporting a whole range of applications focused on decentralizing finance in the world.
- Satoshi Nakamoto stipulated that in order for Bitcoin to overcome inflation, unlike fiat money, it would have a maximum issuance of 21 million tokens. This situation is not replicated in the case of Ethereum, where up to now no limit has been set for the issuance of ETH tokens.
- Market capitalization. In the case of Bitcoin, since its launch where its value was calculated at just a few cents on the dollar, at the time of writing this article, the price of each bitcoin exceeds $30,000 dollars.
From reaching 60 cents per unit in 2015, Ether's value has increased to above $1,900 per token at the present time.
These two are currently the most recognized cryptocurrencies in blockchain development services, it is important to know them a little more as this story is just beginning and, in combination with the development of various other technologies, such as artificial intelligence or the 5G network, they will give a lot to talk about during the next decade.
