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Table of Contents
The difference between Ethereum and Bitcoin smart contracts
1. Different design goals
2. Different execution environments
3. Function and flexibility
4. Security and scalability
5. Applicable scenarios
Home web3.0 Differences on Ethereum Bitcoin Contracts

Differences on Ethereum Bitcoin Contracts

Jul 15, 2025 pm 09:09 PM
Blockchain Bitcoin binance Ethereum digital currency the difference Compare Binance exchange Huobi trading platform okx optimism Ouyi

The difference between Ethereum and Bitcoin smart contracts lies in design goals, execution environment, functional flexibility, security and scalability and applicable scenarios. 1. In terms of design goals, Bitcoin is centered on digital currency, with limited functions and non-Turing-complete smart contracts. Ethereum is specially designed to support smart contracts and DApps, and the language is Turing-complete. 2. In terms of execution environment, Bitcoin contracts run on restricted Bitcoin Script VMs and are inefficient; Ethereum contracts are executed on EVMs, supporting complex computing but consuming Gas. 3. In terms of function and flexibility, Bitcoin only supports transaction condition control and cannot implement DeFi or NFT; Ethereum can build complex applications such as tokens, NFTs, and lending protocols. 4. In terms of security and scalability, Bitcoin is simpler and safer but has poor scalability; although Ethereum has strong functions but high risks, it improves scalability through technologies such as Layer 2. 5. In applicable scenarios, Bitcoin is suitable for simple payment and cross-chain exchange, while Ethereum is suitable for complex scenarios such as DeFi, GameFi, and DAO.

Differences between Ethereum Bitcoin Contracts - php Chinese

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The difference between Ethereum and Bitcoin smart contracts

Both Ethereum and Bitcoin support smart contracts, but they differ significantly in design goals, functional implementation and applicable scenarios.

1. Different design goals

The core positioning of Bitcoin is decentralized digital currency, which has limited smart contract functions and is mainly used for simple transaction scripts (such as multi-signature, time lock, etc.). Bitcoin's scripting language (Script) is non-Turing-complete, supports only basic logic and cannot perform complex calculations.
In contrast, Ethereum’s core goal is to support smart contracts and decentralized applications (DApps). Its contract languages (such as Solidity and Vyper) are Turing-complete, support complex logic such as loops and conditional judgments, and can achieve more flexible automated business logic.

2. Different execution environments

Bitcoin’s smart contracts run on a Bitcoin virtual machine (Bitcoin Script VM), with limited execution environment and can only handle simple transaction verification logic. The contract code is directly embedded in the transaction, and each execution requires verification of the entire network node, which is relatively inefficient.
Ethereum's smart contracts run on an Ethereum virtual machine (EVM), the contract code is stored on the blockchain, executed by miners (or validators), and consume Gas (calculation fees). EVM supports more complex computing, but has higher execution costs.

3. Function and flexibility

Bitcoin contracts are mainly used for transaction conditional control (such as P2SH, Lightning Network Channel), and cannot implement complex business logic, such as decentralized finance (DeFi) or NFT.
Ethereum contracts support complete programming logic, which can build DApps, tokens (ERC-20), NFTs (ERC-721), lending protocols (such as Aave), decentralized exchanges (such as Uniswap), etc.

4. Security and scalability

Bitcoin contracts are more secure because they are simple in functions and have a small attack surface (such as no risk of reentry attacks). However, the scalability is poor and it is difficult to support high-frequency trading.
Ethereum contracts are powerful but have higher risks. They have suffered huge losses due to contract vulnerabilities many times in history (such as The DAO attacks). But through Layer 2 (such as Optimism, Arbitrum) and sharding technology, Ethereum is more scalable.

5. Applicable scenarios

  • Bitcoin contract: suitable for simple payment logic and cross-chain atomic exchange (such as hash time lock contract HTLC).

  • Ethereum contract: suitable for complex DApps, DeFi, GameFi, DAO (decentralized autonomous organization), etc.

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