1.3 Ethereum vs. Bitcoin
How does Ethereum compare to bitcoin as a blockchain?\
Bitcoin (the blockchain) came about in 2008/2009 and it focused by design on the ownership of Bitcoin (the cryptocurrency). The consensus of the blockchain (all the operations, states, state transitions...) exclusively focuses on the ownership of these coins, and nothing else. So all these state transitions track the transfer of Bitcoin (cryptocurrency) and, in the case of the Bitcoin blockchain, they're referred to as UTXOs (Unspent Transaction Outputs).\
Compared to that, the Ethereum blockchain by design focuses on general purpose states (states that do not only focus on the ownership of Ether but anything that can be encoded with the EVM general purpose programming language). So we are looking at a general purpose blockchain that can encodes arbitrary states and arbitrary rules for the state transitions, which tracks not only the state of Ether cryptocurrency ownership on the platform but the state of the different smart contracts as transactions interact with them.\
That is the key difference between Ethereum and Bitcoin: Bitcoin is UTXO based and Ethereum is state based (or account based).\
How does the programming language on Ethereum compare to what's available on Bitcoin?
Bitcoin has what is known as
bitcoin script
: it is a scripting language (so it's intentionally and by design limited) that allows an evaluation of spending conditions that yieldtrue
orfalse
boolean outputs, which is what is required for Bitcoin (and what it's supposed to do).\But when you look at Ethereum, it supports a virtual machine known as Ethereum Virtual Machine (EVM), and by design it is meant to be a general purpose programming language. Remember it's Turing complete (which is a key differentiating feature of Ethereum's expressiveness power when compared to Bitcoin).
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