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Ethereum: What is the difference between Dogecoin and Bitcoin at the network level?
As the second largest cryptocurrency for market capitalization, Ethereum has gained significant attention in recent times. One of the most popular cryptocurrencies that will be compared with Dogecoin (Doge). While both are decentralized digital currencies, they have different differences at the network level. In this article, we will deepen the technical aspects of these two cryptocurrencies and explore what distinguishes them.
Bitcoin network level
At the network level, Bitcoin (BTC) is an algorithm of consensus of work test (POW). This means that miners are rewarded with recently coined bitcoins to solve complex mathematical problems to validate transactions in the block chain. The Pow consensus algorithm is based on the security of cryptographic hash functions to guarantee the integrity and immutability of the block chain.
In contrast, Ethereum (ETH) is an algorithm of test consensus (POS). This means that validators are rewarded with ETH recently coined to create and maintain their “participation” in the network. The POS consensus algorithm is based on the safety of cryptographic hash functions to guarantee the integrity and immutability of the block chain, but also introduces a more efficient and less vulnerable alternative.
HASH RATE VERSUS Energy Consumption
One of the most significant differences between Bitcoin and Ethereum at the network level is its hash rate and energy consumption. While Bitcoin’s Pow consensus algorithm requires that miners solve complex mathematical problems using powerful computers (hash rates that vary from 10 to 100 TH/S), the Ethereum post consensus algorithm depends on the fact that the validators have “stake “On the network, which is typically higher than Bitcoin’s.
The Ethereum hash rate is significantly lower than Bitcoin’s, but its energy consumption is also more sustainable. With a relatively small number of miners required to validate transactions, the use of Ethereum energy per transaction is approximately 30-50% lower compared to Bitcoin. In addition, the general energy expenditure required to feed the Ethereum network is approximately 20% lower.
Safety and scalability
Another significant difference between Bitcoin and Ethereum at the network level is its security and scalability capacity.
Bitcoin’s security is mainly based on its work testing algorithm, which has been designed to be safe against a large number of attacks. However, this also makes 51% attacks more vulnerable, where an adversary could control 50% or more of the miner. In addition, Bitcoin’s scalability limitations have made it less adequate for generalized adoption.
Ethereum, on the other hand, has introduced several innovative security characteristics, including the introduction of “smart contracts” and a incorporated fragment mechanism called Constantinople (C9). These characteristics allow Ethereum to manage greater quantities of data, reduce transaction costs and increase scalability. In addition, Ethereum’s post consensus algorithm is designed to be more efficient in energy than Bitcoin’s Pow algorithm.
Conclusion
In conclusion, although both Bitcoin and Ethereum are decentralized digital currencies with unique characteristics, they differ significantly at the network level. The Ethereum stake test algorithm, combined with its innovative security characteristics such as fragments and intelligent contracts, makes it a more scalable and sustainable cryptocurrency compared to Bitcoin. As the demand for decentralized applications (DAPPS) continues to grow, Ethereum is well positioned to remain a leading player in the cryptocurrency space.
Sources:
- “Ethereum 2.0: a new consensus algorithm” by Vitalik Butein
- “Bitcoin vs. Ethereum: What is the difference?” By cryptoslate
- “Ethereum Sharding: A guide” of Ethereum.