Bitcoin was created in 2008 by Satoshi Nakamoto. We still don’t know who Satoshi Nakamoto is. Satoshi abandoned the Bitcoin project while it was in its early stage and handed it to the developers. So, Bitcoin has no real head figures who are in charge of the project.Ethereum was founded in 2014 by Vitalik Buterin. Vitalik is a Russian-Canadian programmer, who is still actively involved in the process of Ethereum development. Unlike Bitcoin, Ethereum has real head figures from whom you can get feedback on what’s going on with the Ethereum blockchain.
While Bitcoin allows its users to store value and transfer money, Ethereum allows its users to program money. On the Ethereum network, a developer can upload and run a computer code which executes itself automatically when certain conditions are met. Bitcoin is good at storing value, that is why it is called digital gold. Ethereum has its own currency called Ether. In order to execute smart contracts on Ethereum, a small amount of Ether must be paid for the use of network computing power. So, Ether is not just a currency, it’s an essential part of the Ethereum blockchain. That’s why Ether is often referred to as digital oil.
Another major difference between Bitcoin and Ethereum is the way they validate a new block. Two of the most common way to validate new transactions are Proof of Work (PoW) and Proof of Stake (PoS). Currently, both blockchains are running on Proof of work. But Ethereum is soon to be functioning on Proof of stake.