Some Information from the Cryptocurrency World
Bitcoin is a cryptocurrency invented in 2008. It became available when it was released as an open source software in 2009. Also known for not being tied to any central bank or single administrator, Bitcoin is a decentralized digital currency that can be transferred from user to user on the bitcoin network without the need for intermediaries. Transactions are verified by network nodes via cryptography and recorded in a public ledger called the blockchain. El Salvador declared Bitcoin the official currency with the bill passed by the Senate on June 6, 2021. (source wikipedia)
In 2008, the person or people using the name Satoshi Nakamato published their technical papers on Bitcoin, an end-to-end electronic payment system. Thus, Bitcoin emerged as a decentralized, tamper-proof cryptocurrency. It came into use as a public network in 2009. In the following process, Bitcoin was named as the "1st generation blockchain" as the first successful cryptocurrency.
With its distributed structure, it started to rise in today's financial order in a short time. While transactions entering the Bitcoin network can be tracked, it is impossible to find out who the transaction is. Due to its chain structure, transactions confirmed on the Bitcoin Blockchain network are known to be irreversible and irreversible.
Due to the lack of regulation or control, the value of Bitcoin has increased from zero to thousands of dollars. After the rise of Bitcoin, many other cryptocurrencies have emerged. These currencies are called "alternative coins" or "alt coins". While creating alternative cryptocurrencies, competitive advantage has been taken advantage of by having different features at various points and new market forms have emerged. The highest amount of money that can be produced, algorithm, blockchain subtypes (private/shared, permissioned/unauthorized consensus) can be given as examples of these differences.
The highest amount of Bitcoin that can be produced on the Bitcoin blockchain platform is 21 million. Bitcoin provides end-to-end, address-to-address transfers, and the block generation time is almost 10 minutes.
Bitcoin addresses are users' identities on the platform. They cannot be associated with the person performing the transaction. When the keys of these addresses are lost, no rights can be claimed on the addresses.
Advantages of Bitcoin
There are many advantages as well as various risks of using Bitcoin. Low risk of inflation and collapse, being simple, reliable and untraceable* (anonymous) are among its main advantages. The fact that money transfers are safer, cheaper and faster compared to traditional methods is an important advantage of Bitcoin. You can access your Bitcoins worth millions of lira from anywhere you can access your wallet. There is no way to carry such high amounts of money with cash or any other method so easily. The fact that the transactions made and your account balance are not known or controlled by any person/persons, government or bank also provides some advantages.
Disadvantages of Bitcoin
Although it may seem like an advantage in some cases, there are cases where it creates a disadvantage. It causes it to be used in payments related to illegal trade transactions and to be used for money laundering. Other disadvantages of the system are the low number of experts on this technology, the risk of losing, and the low number of platforms on which to spend.
What is Ethereum?
In its simplest terms, Ethereum is a distributed platform based on blockchain technology. Its founder is Vitalik Buterin. Donations and requests for ICOs, i.e. for coins that collect pre-demand before they are put on the stock market, are mostly received with Ethereum.
Difference of Ethereum and Bitcoin
Ethereum, like Bitcoin, is a distributed blockchain platform. The main difference between the two is the capabilities of the users and their intended use. Bitcoin; It is distributed, anonymous and transparent. The most important feature of Ethereum is its smart contract system. While the block generation period on the Bitcoin platform is 10 minutes, a block is produced every 15 seconds on Ethereum. So the transaction verification process is faster on the Ethereum platform. While Bitcoin mining depends on the power of the processor, in Ethereum mining, the system called GPU instead of ASIC and CPU is balanced between producers.
