A person or group using the alias Satoshi Nakamoto uploaded a white paper explaining the decentralized peer-to-peer electronic cash system known as Bitcoin to a cryptography mailing list in late 2008.
The double spending protection in Bitcoin is based on the Hashcash proof of work algorithm, but instead of employing a hardware trusted computing function like the RPoW, it uses a decentralized peer-to-peer protocol for tracing and confirming the transactions. In essence, the proof-of-work system is used by individual miners to "mine" bitcoins for a reward, which are then validated by the network's decentralized nodes.
Bitcoin was created on January 3rd, 2009, when Satoshi Nakamoto mined the first block, for which he received a reward of 50 bitcoins. Hal Finney was the first Bitcoin user; on January 12, 2009, Satoshi Nakamoto gave him 10 bitcoins in the first bitcoin transaction ever.
Programmer and co-founder of the Bitcoin Magazine Vitalik Buterin claimed in 2013 that Bitcoin required a scripting language for creating decentralized applications. Lacking support from the community, Vitalik began work on Ethereum, a new blockchain-based distributed computing platform that included a scripting capability known as smart contracts.
On the Ethereum blockchain, smart contracts are scripts or programs that are deployed and run. They can be used, for instance, to conduct a transaction if specific criteria are met. Specific programming languages are used to create smart contracts, which are then translated into bytecode by a decentralized Turing-complete virtual machine known as the Ethereum virtual machine (EVM) and read and executed by it.
Additionally, programmers can create and publish applications that work inside the Ethereum blockchain. These programs are typically referred to as DApps (decentralized apps), and the Ethereum blockchain now hosts hundreds of DApps, including social media sites, gaming platforms, and money exchanges.
Ether, the Ethereum cryptocurrency, is a digital asset that can be moved between accounts and is used to cover the costs associated with the computing power required to carry out smart contracts.
Blockchain technology is currently attracting a lot of public interest and is already being used in many other applications outside of cryptocurrency. Watch our other films on Binance Academy for additional details on
blockchain and other fascinating subjects.
You have touched down on the history of cryptocurrency by touching down on the history of Bitcoin and Ethereum. Thanks for sharing
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