Bitcoin

Bitcoin is the first and most widely known application of blockchain technology. It primarily functions as a decentralized cryptocurrency for secure peer-to-peer transactions. Key features of Bitcoin include:

• Cryptocurrency Focus: Bitcoin was designed as a digital currency to replace traditional monetary systems.

• Proof of Work: It uses a resource-intensive Proof of Work (PoW) algorithm to validate transactions.

• Block Creation Time: New blocks are added approximately every 10 minutes.

• Transaction Costs: Costs are generally tied to the size of the transaction data in the block.

• Immutable Ledger: Transactions are permanent and cannot be altered.

• Limited Flexibility: Bitcoin's blockchain is not designed for more complex functionalities beyond transferring cryptocurrency.

Ethereum

Ethereum was introduced in 2013 by Vitalik Buterin as a more versatile blockchain platform. It supports decentralized applications (DApps) and smart contracts, which extend its capabilities far beyond cryptocurrency. Key features of Ethereum include:

• Smart Contracts: These programmable contracts automate business logic, allowing for a wide variety of applications, such as supply chain management and voting systems.

• Proof of Stake Transition: Ethereum transitioned from PoW to Proof of Stake (PoS) in 2022, drastically reducing energy consumption.

• Faster Block Creation: Blocks are added every 12–15 seconds, enabling faster transaction processing.

• Flexibility: Ethereum supports various applications and use cases beyond cryptocurrency.

• Ether Currency: Ether is used as the currency on the Ethereum network and pays for computational resources.

• Lower Transaction Costs: Fees vary based on computational complexity rather than block size.

• Energy Efficiency: PoS saves 99.95% energy compared to PoW systems.

Summary of Differences

While Bitcoin is primarily focused on serving as a decentralized digital currency, Ethereum is a multifunctional platform designed to support a broad spectrum of decentralized applications. Ethereum's introduction of smart contracts and its transition to PoS make it more adaptable and environmentally sustainable than Bitcoin​​​.