The Talmud (ibid) brings different opinions about the origin of the two in regards to how was the Torah initially written.
It is agreed by all that the language has remained the same, Hebrew – as we know it today, It is similarly agreed that today we use only the Ktav Ashuri and the Ktav Ivri contains no sanctity. (Yadaim 4, 5; Megilah 8b; Rashi ibid)
It is brought down that we now use Ktav Ashuri and all of our Torah scrolls, tefillin, and mezuzot, and that this was instituted by Ezra. But if a sofer were to write a Torah in Paleo Hebrew (like as found in the Dead Sea Scrolls), what would the status of such a scroll be? Would the scroll be permitted for use? Would it have kedusha?