What is Ethereum and how is it different from Bitcoin?
Bitcoin was built to be digital money. Ethereum, launched in 2015, was built to be a world computer: a blockchain that can run programs as well as move coins.
Smart contracts
A smart contract is a small program stored on Ethereum. It runs exactly as written, for example "release these tokens when that payment arrives". Smart contracts power decentralised exchanges, lending apps, stablecoins and digital collectibles.
What ETH is for
ETH is the coin of the Ethereum network. Every transaction and every smart contract action pays a small fee in ETH, called gas. ETH is also locked up (staked) by validators who secure the network.
Bitcoin vs Ethereum
- Purpose: Bitcoin focuses on being scarce digital money; Ethereum focuses on apps.
- Supply: Bitcoin has a hard cap of 21 million; ETH has no fixed cap, but part of every fee is burned.
- Security: Bitcoin uses proof of work; Ethereum moved to proof of stake in 2022.
- Speed: Ethereum adds a block about every 12 seconds; Bitcoin about every 10 minutes.
Tokens on Ethereum
Thousands of other tokens, including a version of USDT (ERC20), live on Ethereum. When you send them, you pay gas in ETH.
See the live ETH price on the ETH coin page or trade it on the Trade page.
This article is for education only and is not financial advice. Crypto prices can rise and fall sharply; only trade with money you can afford to lose.
