The world of cryptocurrencies is rapidly evolving, but for many, it still seems like a 'toy for techies'. In this article, I will explain simply what blockchain is, how Bitcoin appeared, and why Ethereum changed the game.
🔗 What is blockchain?
Blockchain is a chain of blocks with information that is continuously updated but cannot be changed retroactively.
Each block:
contains data (for example, about cryptocurrency transfers),
has a unique code (hash),
is linked to the previous block.
It's like an online transaction journal that everyone can see — but no one can change.
📌 Imagine: you and your friends are recording all debts in a shared notebook. But the notebook is stored in 1000 copies — and if someone tries to erase something, everyone will see it.
🪙 What is Bitcoin?
Bitcoin (BTC) is the first cryptocurrency, created in 2009 by a person (or group) under the pseudonym Satoshi Nakamoto.
👉 It was created as a digital alternative to money that is not controlled by any bank or government.
Features of Bitcoin:
The supply is limited — only 21 million BTC.
Transfer is directly between people (peer-to-peer).
You can't 'print' more like regular money.
🟡 Bitcoin is 'digital gold' that people invest in to preserve value.
🧠 What is Ethereum?
Ethereum (ETH) is not just a cryptocurrency. It is a platform for creating applications on the blockchain, launched in 2015 by Vitalik Buterin.
Its key innovation is smart contracts: programs that automatically execute the conditions written in code.
🔍 Example: You create a raffle. Participants send ETH. The smart contract automatically selects a winner and transfers the prize — no one can interfere.
Thanks to Ethereum, the following appeared:
NFTs (non-fungible tokens),
DeFi (decentralized finance),
DAOs (decentralized organizations),
ERC-20 tokens.
🟢 If Bitcoin is gold, then Ethereum is a whole digital platform.
🟡 I use Binance for storing, trading, and staking crypto.
👉 If you want to try — here is a referral link.
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