Why Ethereum is going to take over Bitcoin

What is Bitcoin and blockchain and how do they work

Before jumping deep into the knowledge of why Ethereum will take over bitcoin we should know the basic terms of cryptocurrency, blockchain and new upcoming technologies like Web 3.0 and metaverse. we will cover each of these in quick and easiest way, so lets gets started.

What is Bitcoin and blockchain and how do they work:

Bitcoin is a digital currency, also known as a cryptocurrency, that uses blockchain technology to facilitate transactions. It was created in 2009 by an individual or group of individuals using the pseudonym Satoshi Nakamoto.

Blockchain is the technology that underlies Bitcoin and other cryptocurrencies. It is a decentralized, distributed ledger that records transactions on multiple computers. This creates a permanent and unchangeable record of all transactions that have occurred on the network.

Here’s how Bitcoin and blockchain work together:

  1. Transactions: When a user wants to send Bitcoin to another user, they initiate a transaction on the network. This transaction includes the sender’s public address, the recipient’s public address, and the amount of Bitcoin being sent.
  2. Verification: The transaction is then broadcast to the entire network, where it is verified by multiple computers, also known as nodes. These nodes use complex mathematical algorithms to confirm the validity of the transaction.
  3. Block creation: Once the transaction has been verified, it is grouped with other verified transactions to create a block. Each block contains a record of multiple transactions, and once a block is created, it is added to the chain of blocks, creating a permanent and unchangeable record of all transactions that have occurred on the network.
  4. Mining: The process of adding new blocks to the blockchain is called mining. Miners are nodes that perform complex mathematical calculations in order to add new blocks to the blockchain. In return for their efforts, miners are rewarded with newly minted Bitcoin.
  5. Decentralization: The blockchain is a decentralized system, meaning that it is not controlled by any single entity. Instead, the network is maintained by a decentralized network of computers, and all transactions are recorded and verified by multiple computers, making it resistant to tampering, fraud, and censorship.

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