Categories: Comparison

Bitcoin vs Ethereum – Transaction Throughput and Fees

Cryptocurrency enthusiasts often like to compare Bitcoin and Ethereum. These are the two most popular cryptocurrencies and Ethereum is even attempting to take Bitcoin’s place as top cryptocurrency. Comparing some aspects show the strengths and weaknesses of either asset. A few of these are network transaction fees and associated transaction throughput. Currently, Ethereum processes more transactions at lower fees than Bitcoin.

Ethereum Beats Bitcoin In Transaction Throughput

Ethereum is younger than Bitcoin, so looking at things such as the total of network transactions may seem inconclusive. After all, one may assume Ethereum has far fewer transactions compared to Bitcoin. That is no longer the case and it appears the tide is shifting in favor of Ethereum.

The statistics seem to indicate the Ethereum network processed close to three times the number of transactions compared to Bitcoin on July 4th. A total of 15.16 million gas units have been processed on the network. Keep in mind the average transaction – when related to Bitcoin – would use about 21,000 gas units. Quick calculations – which need to be taken with a grain of salt – show us July 4th saw 720,000 Bitcoin-sized transactions on the Ethereum blockchain. That is a substantial amount.  

The Bitcoin network processed a total of 255,483 transactions on the same day. That puts the Ethereum network well ahead of Bitcoin. This is an interesting turn of events, but does not necessarily mean anything monumental is taking place. Fluctuations are bound to happen in any market. Some days different coins will outperform another one.

The average network transaction fee for Bitcoin on July 4th was higher compared to Ethereum’s transaction fee. This shows the Ethereum network – in its current form and on this particular day – successfully processed more Bitcoin-sized transactions than the Bitcoin network itself. Additionally, the Ethereum network processed that higher number of transactions at lower fees than Bitcoin could. Although the difference is not as big as some people would like it to be, Ethereum was a more efficient network solution than Bitcoin.

It is important to keep in mind this is only one day of comparing both ecosystems and their transaction throughput. Ethereum has seen a lot more transactions lately. This is mainly due to cryptocurrency ICOs becoming more popular. The Bitcoin network probably processes more “payment” transactions instead of ICO transactions. It appears this may give Ethereum a slight edge over Bitcoin.

This ecosystem may evolve over the coming months. Ethereum gas prices are on the rise, whereas the Bitcoin network fees are slowly coming down. If these trends continue over the next few months then Bitcoin may consolidate its foothold as top cryptocurrency for a while longer. However, both blockchains suffer from bloat and “miner spam.” Whichever of the two can scale properly first will have a competitive edge.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx
Tags: bitcoinEthereumfeesTransaction Throughput

Recent Posts

Bitcoin Price Watch: Currency Rises to $6,600

At press time, the father of cryptocurrency is up by roughly $300 from yesterday, and is trading for over $6,600.…

4 hours ago

What Is Zombie Battleground?

Many projects have tried to bridge the gap between blockchain technology and trading card games. Some firms have been a…

5 hours ago

What Is the CoolWallet S?

Hardware wallets are an integral part of the cryptocurrency industry. They are an excellent way of keeping one's cryptocurrency portfolio…

6 hours ago

League of Legends PH Client Facilitated Cryptojacking Due to Modified Code

Popular online games have always been a prone target for criminals and hackers. Although these incidents are usually aimed at…

7 hours ago

What Is CoinMarketAlert?

Tracking cryptocurrency prices can be done in many ways. Most enthusiasts rely on various mobile or desktop applications to do…

8 hours ago

One Seemingly Useless Smart Contract Causes Major Ethereum Blockchain Bloat

Even though the Ethereum network is receiving some scaling upgrades, network issues still tend to pop up now and then.…

9 hours ago