What is Bitcoin?

Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Nakamoto implemented the system in 2009 as a way to create and trade digital currency independent of any central authority. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created through a process called mining. Miners are rewarded with bitcoins for verifying and committing transactions to the blockchain. Bitcoin can be used to purchase goods and services online and can also be exchanged for traditional currencies.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowdsale that took place between July and August 2014.

The Ethereum platform went live on July 30, 2015. In 2016, Ethereum was the second most popular cryptocurrency after Bitcoin.

What is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, Ethereum, and other cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.

What is Blockchain?

Blockchain is the technology that underlies Bitcoin and other cryptocurrencies. Blockchain is a distributed database that allows for secure, tamper-proof recording of transactions. Transactions are added to the blockchain in blocks, which are verified by miners. Bitcoin and other cryptocurrencies are built on top of blockchain technology.

What is Mining?

Mining is the process of verifying and committing transactions to the blockchain. Miners are rewarded with bitcoins for their efforts. To mine bitcoins, miners must solve complex mathematical problems. As more miners join the network, the difficulty of the problems increases.

What are Bitcoin, Ethereum, and Other Cryptocurrencies Used For?

Bitcoin, Ethereum, and other cryptocurrencies can be used to purchase goods and services online. They can also be exchanged for traditional currencies like the US dollar or the euro. Cryptocurrencies can also be used to purchase assets like real estate and commercial property.