bitcoin and ethereum , what is the difference?

The Bitcoin blockchain has been designed specifically for monetary applications, while Ethereum can create any kind of applications.

Ethereum, whose computer code is profoundly different from Bitcoin (it was written from scratch), was not built to compete frontally Bitcoin: it is rather two different uses and complementary blockchains technologies. Note the existence of ideological differences between the two communities that surround them: that of Bitcoin is more of libertarian inspiration, centered on the monetary domain (inspired by Hayek's theories in particular), while that of Ethereum aims more to create a new web, decentralized, rather than a new currency.

Microsoft also justifies its choice to use Ethereum for its Azure platform: "While Bitcoin has many interesting uses as cryptocurrency, Ethereum provides the flexibility that many of our customers are looking for. Ethereum has a vibrant community of developers, enthusiastic and open to business applications. "

In practice, participants in the Ethereum network do not just validate monetary transactions: they execute code from decentralized applications, called "Dapps". This code allows in particular the implementation of smart contracts, which constitute the heart of Ethereum's potential.

Ethereum works with a cryptocurrency, ether, which has a specific function: pay the execution of smart contracts, whose operation can consume significant resources. The ether is therefore used to buy "gas" (gasoline) to make these contracts work; if you run out of gas, the contract stops.