Bitcoin and Ethereum: How They Work

Bitcoin and Ethereum are cryptocurrencies that use blockchain technology for secure transactions. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units.

The first cryptocurrency, Bitcoin, was created in 2009 by an anonymous person or group of people using the name Satoshi Nakamoto. Bitcoin is a decentralized currency, meaning that it is not subject to government or financial institution control. Transactions are verified by miners, who are rewarded with new bitcoins for their efforts.

Ethereum was created in 2015 by Vitalik Buterin. Ethereum is also a decentralized currency, but it allows for more complex transactions than Bitcoin. For example, Ethereum contracts can be used to create decentralized applications.

Both Bitcoin and Ethereum are traded on various exchanges and can be used to purchase goods and services.