What advantages and disadvantages does Ethereum have over Bitcoin? What can you do with Ethereum that you simply cannot with Bitcoin? What price do you pay for these additional functionalities?

1 Answer 1


I am just summing up some points found on various website and forums, thanks to original authors.

  1. While both the technologies focus on financial market and are based on a cryptographic blockchain with several programmatic features, they still differ significantly in many areas. For instance, Bitcoin is basically a cryptocurrency which was designed to replace the notes and coins in your pocket with a much reliable and easily available internet-based alternative. Whereas, Ethereum is a programmatic platform that can be utilized to build, deploy and implement ‘smart contracts’ equally contributed by human and computer counter-parties.

  2. Both Bitcoin and Ethereum serve as currencies, they serve different purposes. Where Bitcoin is intended to be a general purpose currency, Ethereum’s Ether (its own internal currency) is used specially to finance the internal processes of Ethereum. In short, Bitcoin can be seen as an alternative currency whereas Ethereum is said to be the alternative law.

  3. Both use encryption and time-stamping.

  4. All transaction processors come to an agreement in Bitcoin about what happened and when according to the transmission and storage of the Bitcoin value token. Whereas, the same is taken care of by Ether in Ethereum, along with the agreement about all processing done in all shared programs on Ethereum World Computer.

source: A3logics

Ethereum is a database layer protocol.

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