The Ethereum and Bitcoin blockchains are superficially the same, in that, both cryptocurrencies use blockchain technology and are the most popularly known cryptos of the 20th century. A bit of learning at any reputed institute for Fintech Training will be able to explain the differences in the blockchains. That’s what we will explore in the next few paragraphs.
The basics of blockchains:
Blockchains are today popular across verticals and industries like banking, agriculture, healthcare, e-commerce, education, mining, property recording, retail, entertainment, media, automobiles, logistics, transport and many more. Blockchain technology brings in the important four attributes of immutability, decentralization, transparency, and security. The benefits offered by Blockchain technology are
- The data ledgers are cryptography protected and contain hashtag functions from the previous block. This information is verified to complete the cryptography transactional process.
- The blockchain data structure is contained in the app-end and causes the data to be immutable, and impossible to delete or alter.
- The peer network has all transactions on the blockchain over all the interconnected computers thus decentralizing the system.
- User-authentication and verification, use blockchain technology sans third-party interference.
- Ledger consensus and record-keeping are enhanced as all data of transactions are contained in the block and are duly verified for maximum trust by the peer network users.
- The ledger is distributed over all Blockchain nodes in real-time.
- Data is always retrievable and never lost.
- Transparent transactions ensure the viewing parties are verified users and reduce transactional ambiguities.
- Blockchain time-stamping ensures a recorded chronological order.
- The source of the ledger can be tracked at every block of the chain.
- Consensus between the parties ensures duplicity and fraud are removed.
- Smart contracts enable presetting criteria and conditions for automatic recording of transactions.
How the blockchains differ:
2009 saw Satoshi Nakamoto invent the Bitcoin as a peer-to-peer cash system which works electronically and replaces the older inefficient banking system. The protocol or Bitcoin’s blockchain was a perfectly transparent financial transaction where data was stored in blocks and interlocked together by hashtags and cryptography.
Since each block carries the signature of hashtags of the previous block, the resultant blockchain is immutable, needs verification across all nodes and works only on authentication. All this, at literally zero fees! The record of transactions can be traced back to the source and all along the chain. The distributed and decentralized system is peer-to-peer, secure and sans any intermediary.
Use of Bitcoins became the way to avoid those bank fees and lengthy authorization processes when transacting. One could avail Fintech Training and use the Bitcoin instead of paper-money and send money across to remote places in completely secure transactions with the click of a mouse. Bitcoins don’t care who is transacting and how much. It could even be used by AI-enabled machines or robots! Bitcoin is uncensored digital money worth its weight in gold!
In contrast, Ethereum blockchains go beyond just being a peer-to-peer blockchain payment transacting platform. Ethereum’s blockchain can do more and uses its platform to create smart contracts and DApps which execute and store the logic coded for creating them. The fintech training partner the Ethereum platform can transfer and supports the digital currency and DApps. Ethereum can also execute the smart contract using the “if-this-then-that” coded logic and condition coded in its blockchain.
In its functioning, one can use the Ethereum crypto, digital wallets, the native programming language, smart contracts enabled by Solidify and more. Thus bank fees, escrows, and intermediary agencies can be totally avoided. Some of the examples are Airbnb, eBay, OYO, Upwork, and Uber. Hence Ethereum is programmable money!
Bitcoin platform and the Ethereum Blockchain are not in competition and are designed for different purposes. It is rumored that Bitcoin will shortly be powered with the lightning network which when launched could bring in competition between the Bitcoin and Ethereum Blockchains and apps dependant on them. Till then both technologies work well for resolving modern complexities.
There are very many jobs on offer in the blockchain segment and these are well-paid too! It is a step in the right direction to make a career of Blockchains and fintech since they are growing and demand outstrips personnel supply. At Imarticus Learning the fintech training has an excellent course curriculum, assured placement, soft-skill and resume building module and an industrially well-accepted certification. Rush, since admissions are limited!
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