DIFFERENCES BETWEEN BITCOIN MINING AND ETHEREUM MINING
Aug 04, 2017 Posted / 3421 Views
MINING is a very complex time consuming work that lets the miner participate in the given cryptocurrency network. All information is enrolled into blocks that are linked to other blocks which creates a block chain. These blocks are analysed before coming into transactions and miners help in handling such complex processing networks. Mining is the way digital currency comes into circulation. ETHEREUM and bitcoin mining is the same. The process of mining of ether increases the volume of ether in circulation and the same applies to bitcoin mining.
1) Bitcoin mostly acts as coin that helps in online transactions but ETHEREUM is much more than only a digital currency. Bitcoin aims at the usage of a single type of currency but ETHEREUM is a wider platform with many more applications.
2) As per research bitcoin mining is much more time taking as it has a block time of ten minutes nearly but because of the very complex programs used in ETHEREUM mining it has a block time of only ten to twelve seconds. This is a great advantage for the miners.
3) The programming language used as a basic for bitcoin mining is C++ but ETHEREUM mining is based on the combination of seven programming languages which are C++, python, java, java script, Haskell, rust and go.
4) Bitcoin mining is done with high cost hardware that can be used only for mining and no other purposes while ether mining involves low cost hardware and graphic cards that can also be used for playing online games. The reward for mining of a block of ether is 5 ether while the reward for mining of bitcoin reduces to half every 4 years.
5) It is a big advantage for ETHEREUM miners because it allows the users to make their own digital assets and tokens known as smart contracts which helps in exchange, but no such method exists in bitcoin mining.
6) Supply is also a very big difference, most of bitcoins have already been mined with majority of the shares going to the miners but ETHEREUM will exhaust only up to half of its total supply from 5 years of its existence.
7) ETHEREUM allows its users to raise money and funds for various projects and after the total sum has been recovered, the funds are returned back to the contributors. Bitcoin mining has no such advantages.
8) The cost of transactions is also different in ETHEREUM mining, known as gas ETHEREUM which depends on per block of ether but bitcoin mining depends upon the block size.
9) Block chain technology has developed a lot due to ETHEREUM, whereas bitcoin mining is powered by this technology.
10) The bottom line is that ETHEREUM and bitcoin have developed with different purposes and as such do not compete, bitcoin mining forms only a small part of this technology but due to the fast development of ether mining specially in trading purposes it is big force among all other cryptocurrencies.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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