Ethereum: What do you need to know when your friend manages a Bitcoin business
If your friend has a business that involves performing a Bitcoin -based system, it is natural to have doubts about how it works and why it is so confident in your success. As someone who is new in the world of cryptocurrencies, you may scratch your head by asking -who are exactly Bitcoin and Ethereum and why your friend seems to be convinced that I am the key to the future of the company.
To better understand the basic elements of these complex systems, take a moment to explain how it works.
What is bitcoin?
Bitcoin is a decentralized digital currency that uses safety encryption and a point -point network to check for transactions. It was created in 2009 by an individual or anonymous group using the pseudonym Satoshi Nakamoto. Bitcoin operates regardless of any government or financial institution, allowing users to send and receive funds without the need for intermediaries.
What is Ethereum?
Ethereum is a blockchain open source platform that allows the creation of smart contracts and decentralized applications (DAPPS). Intelligent contracts are self -executive contracts with the conditions of the contract written directly on code lines. These can automate various processes, such as transfer of assets or performing specific tasks. Ethereum’s exclusive architecture allows developers to build a wide range of applications at the top of their blockchain.
How do Bitcoin and Ethereum work together?
Bitcoin and Ethereum do not exclude each other, but it works independently of each other. Bitcoin is mainly used for transactions between people or companies that do not have an Ethereum wallet. However, many modern cryptocurrencies, including Ethereum, use the Bitcoin network to validate transactions and process payments.
Why do your friend run a business based on bitcoin?
There are several reasons why your friend can run a Bitcoin -based business:
* Decentralized Finance (Defi) : Ethereum is a popular platform of Defi applications that offers a variety of financial services, such as loans, loans and negotiations.
* Intelligent contracts : Intelligent contracts can automate various processes, such as transfer of assets or performing specific tasks.
* Initial coins (ICO)
: ICOs are events in which the new cryptocurrencies are launched to the public. Ethereum is often used as a platform for icons.
What should you do?
If your friend’s business involves making a Bitcoin -based system, it is natural to have doubts about how it works and why it is so confident in its success. Here are some potential steps you can do:
* Require to explain the basic elements : Put an open conversation with your friend about what Bitcoin and Ethereum are, how it works and why they think they are effective for their business.
* Search together : Looking for Bitcoin, Ethereum and other cryptocurrencies to better understand your technology and applications.
* Talk to others in the community : Connect with people familiar with these topics to understand more as Bitcoin and Ethereum works.
Being interested in your friend’s business and educating themselves on these complex systems, you can make the knowledge that can help your friend’s business to be successful.
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