BMB Academy

What is Bitcoin?

BITCOIN - BTC ( World No.1 )

Close up photo of bitcoin crypto currency

Bitcoin (₿) is a cryptocurrency, a form of electronic cash. It is a decentralized digital  currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. 


Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009. There is no Bitcoin office or Bitcoin owner.  Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by the University of Cambridge estimates that in March 2021 there were 70 million unique users using a cryptocurrency wallet, most of them using bitcoin. Current Bitcoin Market Capitalisation US$906 Billion.

ETHEREUM - ETH ( World No. 2 )

Ethereum and Bitcoin

Ethereum is an open-source, public,blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. It supports a modified version of Nakamoto consensus via transaction-based state transitions. Ether is a token whose blockchain is generated by the Ethereum platform. Ether can be transferred between accounts and used to compensate participant mining nodes for computations performed.  Ethereum provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. The virtual machine’s instruction set, in contrast to others like Bitcoin Script, is thought to be Turing complete. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network. Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowd sale that took place between July and August. Ether market capitalization is currently US$ 250 Billion in 2021.