While the growing popularity and use of cryptocurrencies for payment solutions and businesses is undeniable, with more than 10,000 cryptocurrencies available, the market can be confusing for businesses. Compared to the others, Bitcoin and Ethereum stand out and are more widely used, considering their market capitalization, and wide acceptance.
Bitcoin or Ethereum: What’s The Difference?
Bitcoin and Ethereum are two different cryptocurrencies developed with different fundamentals. Bitcoin operates using the Proof of Work mechanism, while Ethereum switched to Proof of Stake after 2022. This change differentiates them in terms of transaction speed and efficiency, transaction fees, and scalability
Other important differences between Bitcoin and Ethereum include functionality and supply:
Functionality: Bitcoin is intended to be a currency for secure and decentralized transactions, while Ethereum is a platform for smart contracts and decentralized applications (dApps).
Supply: Bitcoin has a fixed maximum supply of 21 million coins, while Ethereum does not have a predetermined maximum supply.
Businesses interested in integrating Bitcoin and Ethereum can compare their transaction capabilities to determine the most suitable cryptocurrency for their business.
Comparing Transaction Capabilities
Transaction Speed and Efficiency
When it comes to transaction speeds, Ethereum is ahead of Bitcoin, thanks in part to the consensus mechanism used. Currently, block processing times for a transaction through Bitcoin average 10 minutes, while the same number is 12 seconds on average for Ethereum. In this sense, Ethereum is a better option for businesses for faster transactions.
Transaction Costs
Another important issue that differentiates Bitcoin and Ethereum is transaction fees. Both networks do not have a predetermined transaction fee. Under normal conditions with no network congestion, transaction fees are limited to a few dollars. However, during periods of high traffic, these costs can increase significantly. Businesses can integrate both Bitcoin and Ethereum through Bitpace to easily track transaction fees and finalize transfers more cost-effectively.
Scalability
In terms of transactions per second (TPS), Ethereum handles around 30 transactions, while Bitcoin processes only 7. With Ethereum 2.0, Ethereum’s TPS (transactions per second) rates are expected to increase significantly, reaching up to hundreds of transactions per second. Businesses that complete the integration process through Bitpace can benefit from high transaction speeds with both Bitcoin and Ethereum and can realize their transactions within seconds. In this regard, Ethereum 2.0 potentially makes it a more scalable solution for future transaction needs.
How Can Bitpace Help Your Business to Accept Crypto Payments?
Bitpace, a cryptocurrency payment gateway, offers customized solutions for businesses and industries, allowing them to receive payments in more than 70 cryptocurrencies. Businesses that accept payments in both Bitcoin and Ethereum can switch to the other network during congestion, ensuring transactions are completed quickly and cost-effectively.
Bitpace allows any business to easily take advantage of the benefits of Ethereum and Bitcoin with its user-friendly interface, dedicated customer service, and 24/7 functioning payment features!