What is the difference between Bitcoin and Ethereum?
The appearance and introduction of virtual currencies has led to the creation of completely new concepts. Currently, we hear a lot about Bitcoin and blockchains. However, in this sector, there are also a number of other innovative products.
The Ethereum is one of his innovations. Ethereum is often presented as an alternative to Bitcoin, of which it would be the competitor.
But according to Lex Sokolin, director of Fintech Strategy with the consultant Autonomous Research, the two products have a very different character. Their applications also go in radically opposite directions.
"Bitcoin is a real virtual currency", explains Sokolin. "This is mainly a means of payment that can be considered as digital gold. It is like a virtual money reserve. ".
"Ethereum is a global computer platform. It is a blockchain platform where smart contracts can be built and tracked. The Ethereum is a new infrastructure where you can put everything."
inevitable trend
"Ethereum and Bitcoin are really different platforms," Sokolin says. "Bitcoin is in essence digital money. This is probably the way payments will be made in the future. In the financial sector, Bitcoin has already produced a series of spectacular results."
"Ethereum is a new infrastructure on which all possible activities can be carried out. This concept can be used to manage social networks in a decentralized way, to control the Internet of Things and all kinds of connected devices."
Sokolin does not doubt the final success of these new concepts. "Everything will be digitized", he says. "It's the future. In the media, this process has already taken place significantly. A similar phenomenon is observed in the retail sector, where the impact of the digital sector is becoming increasingly clear, particularly in the case of Amazon."
"This can also be seen in the financial sector. Banks and insurance companies are working more and more with digital concepts. Bitcoin and the digitization of money are only one aspect of this evolution. This trend is inevitable."