Bitcoin and Ethereum are two of the most popular cryptocurrencies in the world. Here’s what you need to know about them.

What is Bitcoin?

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is unique in that it allows developers to create smart contracts.

What are the differences between Bitcoin and Ethereum?

Bitcoin and Ethereum are both digital currencies, but they differ in purpose and capability. Bitcoin is a digital asset and a payment system, while Ethereum is a decentralized platform that allows developers to create smart contracts.

Bitcoin is intended to be a more secure and efficient version of digital currency, while Ethereum aims to provide a platform for decentralized applications.