Learn the Differences, Advantages, and Disadvantages of Bitcoin and Ethereum
Bitcoin vs Ethereum Mining
Regarding Bitcoin vs. Ethereum, special consideration should be given to how mining works for both. Blockchain technology is at the heart of both Bitcoin and Ethereum.
However, there are significant differences in their consensus algorithms. Because Ethereum and Bitcoin each have distinct consensus algorithms, the methods used to verify the validity of information added to the ledger differ.
The Proof of Work (PoW) algorithm is used in Bitcoin mining. Within this concept, the likelihood of one mining a block is determined by the amount of computational work done.
The first miner to solve each block’s complex cryptographic puzzle will receive the mining reward. According to the PoW concept, each network miner competes for computational power with everyone else.
Ethereum mining, on the other hand, uses a different algorithm known as Proof of Stake (PoS). Within this consensus algorithm, the likelihood of validating a new block is determined by the size of a stake a particular person possesses, or, in other words, how many coins he possesses.
Block validators in the PoS algorithm do not receive a block reward; instead, they collect network fees as their reward. The reward in the case of Ethereum is known as gas.
There are no mathematical puzzles to solve with PoS, and the creator of the new block is chosen deterministically.
It’s worth noting that Ethereum has a faster block time – the time it takes to validate a block. According to BitInfoCharts, the average Bitcoin block time is slightly more than eight minutes, while Ethereum’s block time is approximately 25 seconds.
