The main difference between Ethereum and
Bitcoin lies in their purpose and functionality.
Bitcoin, created in 2009, is primarily a digital currency designed for peer-to-peer transactions and as a store of value. Its focus is on being a decentralised, secure form of money with a limited supply (21 million coins) and
Bitcoin halving.
Ethereum, launched in 2015, is a more versatile platform that supports smart contracts and decentralised applications (dApps). While it has its own cryptocurrency, Ether (ETH), Ethereum’s primary goal is to enable programmable blockchain transactions. Bitcoin is mainly about transferring value, while Ethereum offers a platform for complex applications beyond simple payments.
Ethereum also uses a different consensus mechanism. Initially, both Bitcoin and Ethereum used Proof of Work (PoW), but Ethereum has since transitioned to Proof of Stake (PoS) with Ethereum 2.0, making it more energy-efficient than Bitcoin’s PoW.