The network is also immune to any third-party intervention.Ĭertain flaws within the Ethereum network (the slower speed of its proof-of-work mechanism and scalability limitations) have led to the advent of many competitors and of Ethereum 2.0 – a planned upgrade by the Ethereum Foundation specifically designed to improve on these performance issues. This allows the network to be used for much more than just digital payments, also serving as a marketplace for financial services, games, decentralized applications (DApps), and more. The biggest advantage of Ethereum is its programmability. The quantity limit means you cannot create new bitcoin at will, which is a leading cause of inflation for traditional currencies. The built-in scarcity of 21 million coins is also likely to support long-term value against fiat money and more abundant forms of crypto. It is also a more widely accepted form of payment than other cryptocurrencies – and this trend is only expected to continue. But because it is the original and by far the most popular cryptocurrency, it also has unique privileges not granted to newer or lesser-known counterparts.įor starters, it has far greater liquidity than many of its peers, so users can retain much of its value after it has been converted to fiat money. Many of the advantages of bitcoin are in line with the advantages of cryptocurrencies as a whole – they are decentralized, easily transferable, and so on.
Privacy was a key concern in the development of Zcash, and it allows users to send information between one another without revealing any identifying information on the blockchain – not even a wallet address. The Zcash network uses the zk-SNARKs algorithm, which stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. The Zcash network is also powered by its own cryptocurrency – ZEC coin – which also has a total supply of 21 million that is expected to be mined completely in 2032. A key difference between Ethereum and Bitcoin is that it has its own programming language that allows developers to program the network to perform other tasks and to transfer other digital assets – including bitcoin and Zcash. The Ethereum blockchain network is powered by the cryptocurrency ether and allows users to move money or otherwise execute transactions directly between one another without any need for a third party. The halving of bitcoin takes place every 210,000 blocks in order to prolong the amount of time it will take for all bitcoin to be mined. The total supply of bitcoin is capped at 21 million, meaning that is the total number of bitcoin that will ever be mined into circulation. On the Bitcoin network, transactions are anonymous but they are also traceable, meaning you can see the digital wallet information of both parties involved in the transaction.
All three also use proof-of-work algorithms as their go-to functionality, wherein miners compete against one another to solve blocks and get a reward.īut there are also a few key differences in how each of these networks operate. How they workīitcoin, Ethereum, and Zcash are all decentralized peer-to-peer blockchain networks that allow users to send currency between one another.
ZCASH MINER BETTER SOFTWARE
The Bitcoin network was launched in January of 2009 as the original form of cryptocurrency, and we have since seen it go through many different phases, including three halvings and a multitude of price swings.Įthereum was created several years later, surfacing in July of 2015 as an open-source software platform for decentralized applications.Ī little over a year later, in October of 2016, Zcash was created as a fork of Bitcoin designed to provide increased privacy over its predecessors. Origins of Zcash vs Bitcoin vs EthereumĪll three of these cryptocurrencies have been around for several years now, but none can beat the longevity of bitcoin. Here are the main similarities and differences between Bitcoin, Ethereum, and Zcash to help decide which can have the biggest impact in your investment strategy. After all, diversification is a wise and important strategy for both your crypto holdings and your greater portfolio. You may decide to invest in all three, or to pick a combination that best suits your goals.
Knowing the unique differences between each of these digital assets can help inform your decision on which to invest in or which to mine. While bitcoin has long been the leader of the crypto space (and still is), altcoins Ethereum and Zcash are two of the hottest up-and-comers on the market to date.Īll three forms of crypto are blockchain-based, but that is one of just a few key similarities they all share. Bitcoin (BTC), Ethereum (ETH), and Zcash (ZEC) have become three of the most popular forms of cryptocurrency over the past few years.
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