Choosing Proof-of-Stake Over Mining Is Ethereum’s Biggest Mistake and Here Is Why

Bitcoin vs Ethereum. Decentralization

Cryptocurrencies come and go, rise and fall, but there are two cryptocurrencies that have always stayed at the top for many years: Bitcoin (BTC) and Ethereum (ETH). Everyone compares these cryptocurrencies all the time.

Bitcoin

Bitcoin is the world’s first cryptocurrency, the father and mother of all other coins. Without BTC, other coins wouldn’t have existed. Bitcoin is the “digital gold”, the most secure coin, the keystone of all. It’s spread all over the globe. Bitcoin’s old software versions work great with its new versions.

The Bitcoin network has had only a few updates lately, but the truth is, it doesn’t need many. It’s good the way it is. Anyone in the world can become a Bitcoin user and launch a fully functional Bitcoin node. You only need a computer connected to the Internet and 400 GB of free space on the hard drive.

Of course you can also download a light wallet on your smartphone, but in this case, it's going to use the wallet's developer node.

The Bitcoin network is used to transfer BTC between users. Make sure to read our detailed guide about Bitcoin: What Is Bitcoin in Simple Terms: From Theory To Practice.

Ethereum

Ethereum is a unique project developed on the base of Bitcoin. It’s not just a digital currency, but also a platform for the creation of blockchain-based applications. The Ethereum network allows you to transfer ETH coins that have value, but you can also launch programs called smart contracts inside the network.

Ethereum is like a botnet that allows you to launch a program on all computers within the network. Unlike a botnet though, Ethereum programs can’t access the external Internet and can’t harm anyone. In recent years, we’ve seen some unique projects developed on the Ethereum platform, like decentralized exchanges and other DeFi projects. They are trading platforms operating based on the preset algorithm without any human control or participation.

Ethereum is regularly updated. According to Electric Capital, over 4,000 developers are working on the project. One of the updates is the introduction of a smart contract for Ethereum staking that already stores over 10% of all ETH. Another important update is mining fee burning in the ETH network.

There is a lot going on with the project, and probably that is why users don't criticize the developers for the lack of an official and user-friendly wallet. There are a lot of wallets for Ethereum, but they are...