Blockchain, originating from Bitcoin's underlying technology, enables peer-to-peer value transfer without intermediaries and introduces digital tokens to the digital world. This innovation marks the transition from the "information internet" to the "value internet." However, blockchain technology requires iterative upgrades for broader applications. Bitcoin, designed as a decentralized electronic cash system, represents Blockchain 1.0, while Ethereum exemplifies Blockchain 2.0.
Key Upgrades: Ethereum's Role
Ethereum emerged as one of the most widely accepted improvements to Bitcoin, introducing:
- Smart contracts: Self-executing code enabling decentralized applications (DApps).
- Token standards (ERC20/ERC721): Simplified creation of digital assets.
- Scalability: A platform for diverse applications beyond currency.
Core Differences Between Bitcoin and Ethereum
| Feature | Bitcoin | Ethereum |
|---|---|---|
| Purpose | Digital cash | Smart contracts & DApps |
| Scripting | Limited (non-Turing complete) | Turing-complete (Solidity) |
| Tokens | Native coin (BTC) | Custom tokens (ERC20/ERC721) |
| Consensus | PoW | Transitioning to PoS |
Who Is Vitalik Buterin (V神)?
Vitalik Buterin, Ethereum's founder, is a pivotal figure in blockchain. Born in Russia in 1994, he immigrated to Canada at six. His early exposure to programming and economics led him to:
- Co-found Bitcoin Magazine (2011).
- Propose Ethereum in 2013 after recognizing Bitcoin's limitations.
- Advocate for decentralized technologies to eliminate trust-based systems.
Ethereum's Genesis
Ethereum's whitpaper outlined goals:
- A new blockchain with Turing-complete scripting (Solidity).
- Smart contracts for complex state transitions.
- Support for financial/non-financial DApps.
How Ethereum Works
Smart Contracts
- Definition: Code stored on-chain, executing predefined rules (e.g., token transfers).
- Execution: Runs on the Ethereum Virtual Machine (EVM).
- Costs: Paid in Gas, ensuring resource fairness.
Token Standards
- ERC20: Fungible tokens (e.g., ICO tokens).
- ERC721: Non-fungible tokens (NFTs, e.g., CryptoKitties).
👉 Explore Ethereum’s token standards
Consensus Mechanism: Ethash (PoW)
- Purpose: Secures the network via computational work.
- Mining Rewards: 5 ETH/block (soon 3 ETH) + Gas fees + ommer rewards.
FAQs
Q1: What’s the difference between Bitcoin and Ethereum?
Bitcoin focuses on decentralized currency, while Ethereum extends to programmable contracts and DApps.
Q2: Why are smart contracts important?
They automate trustless agreements (e.g., loans, NFTs) without intermediaries.
Q3: How does Ethereum’s PoW differ from Bitcoin’s?
Ethereum’s Ethash is ASIC-resistant, promoting decentralized mining.
👉 Learn more about Ethereum’s future upgrades
Conclusion
Ethereum’s innovations—smart contracts, tokenization, and scalability—position it as the foundation for Web3. As it evolves toward PoS (Proof of Stake), its role in decentralized finance (DeFi) and beyond continues to expand.