Cryptocurrency, like Bitcoin, is created through a process called mining. Take Bitcoin as an example—it consists of blocks that are essentially complex mathematical equations. A reward is given for solving each equation, but these equations are so complex that only powerful machines like processors or video cards can solve them. People who invest in this equipment and engage in mining are known as miners. Other cryptocurrencies are mined using a similar principle. Bitcoin (BTC) is the first and most well-known cryptocurrency in the world.
What About Ethereum?
The second most important digital cryptocurrency is Ether (ETH), which powers the Ethereum network. There is a key difference between Bitcoin and Ethereum. While Bitcoin is designed as a peer-to-peer payment system, Ether is both a digital currency and a platform that allows developers to create and run smart contracts and decentralized applications (dApps). The Ethereum network also enables the creation of other cryptocurrencies using its own protocol. Keep in mind that Bitcoin and Ethereum operate on separate protocols and are not interconnected. Learn more about the fascinating world of crypto in upcoming posts!
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