If Bitcoin were a calculator, Ethereum would be a computer.
You don't need a computer to know what the square root of 420 equals to.
That's all Bitcoin is. It’s a network currency that allows two people to transact without a third-party. It does a few jobs well, just like a calculator.
Let’s break down the difference:
Ethereum is a computer because it innovated Smart Contracts:
"With Ethereum, a piece of code could automatically transfer the home ownership to the buyer and the funds to the seller after a deal is agreed upon without needing a third party to execute on their behalf."
A beginner's guide to Ethereum
Ethereum is programmable digital money, while Bitcoin is just digital money.
I don't know much about Ethereum (yet) but this section is to introduce:
- Smart contracts (which allow developers to easily build things on a blockchain through code):
- Bitcoin now having the ability to host smart contracts (through a token called Stacks2.0 making Bitcoin programmable).
Stacks2.0 inherits Bitcoin's security, capital, and network; allowing decentralized apps and smart contracts to build upon it.
What's this mean for folk who won't be coding on the Bitcoin blockchain?
It means we’ll be using blockchain applications other than finance:
Why should we care about decentralized applications and smart contracts?
Our personal information lives on company servers from different apps we use. The centralization of freedom is digitized and dominated by those who have control of the demand.
Don’t believe me? Ask Donald Trump.
Facebook, Twitter, Google, Amazon, and Apple de-platformed the president of the United States. A clear example of censorship from those who control demand.
People are now demanding privacy. To show just how far it’s reached:
My grandfather from India (who can't work a smartphone) sent me an invite to join Signal.
Finance is just the beginning application for blockchain. As innovation for decentralized apps continue, more uses will start to show.
To name a few: internet identities, messaging, and advertising.
Demand for private systems will speed up this process. Tokens like Stacks2.0 allow us to build such applications - while using the most secured network in the world. Best of all, without a central authority.
Big Brother won't always be watching.