Bitcoin, Ethereum, and other cryptocurrencies differ in purpose, technology, and functionality. Bitcoin was the first cryptocurrency, created primarily as a decentralized digital currency designed for peer-to-peer transactions and as a store of value. It operates on its own blockchain with a focus on security, scarcity, and simplicity.

Ethereum, on the other hand, offers more than just a digital currency. It introduced the concept of smart contracts, allowing developers to build decentralized applications (dApps) on its blockchain. Ethereum’s blockchain is programmable, making it highly versatile for various blockchain-based solutions beyond simple transactions.

Other cryptocurrencies, often called altcoins, serve a wide range of purposes. Some aim to improve transaction speeds, privacy, or scalability (e.g., Litecoin, Monero), while others focus on niche applications like supply chain tracking or decentralized finance (DeFi).

Each cryptocurrency is built on distinct protocols, offering varied use cases depending on technological goals and community support.

Bitcoin was created as a decentralized form of money, offering secure peer-to-peer transactions without intermediaries. Its primary focus is value transfer and long-term wealth storage. Ethereum introduced programmable blockchain technology through smart contracts, allowing developers to create decentralized apps (dApps) and innovative financial services. Other cryptocurrencies, such as Ripple (XRP) or Solana, specialize in areas like fast payments, cross-border transfers, or supporting complex decentralized ecosystems. Each cryptocurrency differs in purpose, speed, scalability, and technical infrastructure.