I got a chance to see Joseph Lubin speak a week ago in New York. He was asked a question where he got to elaborate on the difference between Bitcoin and Ethereum.
I’m paraphrasing, but Bitcoin is specialized to handle a large number of transactions specific to currency exchange. There wasn’t a ‘secondary’ intent, like creating smart contracts, that Bitcoin needed to handle.
Ethereum, on the other hand, was built specifically to handle smart contracts and became ‘less optimized’ for plain and simple currency transactions. ETH needs to handle ‘transaction + contract’ whereas BTC only needs to handle ‘transaction’.
All things being equal, Bitcoin is better at currency transactions and Ethereum is better at executing smart contracts. Joseph believed there was a place for both of these blockchains in the future.
Originally posted through Quora.