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  • Layer 1 vs Layer2
  • Layer 1 Blockchains
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  • PoW vs PoS
  • Securing your Crypto
  • Privacy Coins
  • DSocial
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  • Gamefi Explained

BTC vs Ethereum

 While both Bitcoin and Ethereum are cryptocurrencies built on blockchain technology, they serve different purposes and have unique features:

Purpose:

  • Bitcoin: Primarily designed to be a digital currency and store of value, similar to gold. It focuses on facilitating payments and serving as a hedge against inflation.
  • Ethereum: A platform for creating and executing smart contracts and decentralized applications (dApps). It's more versatile than Bitcoin and can host a wide range of applications beyond simple transactions.

Features:

  • Consensus mechanism: Bitcoin uses Proof of Work (PoW), a computationally intensive process that verifies transactions and secures the network. Ethereum is transitioning from PoW to Proof of Stake (PoS), a more energy-efficient mechanism that involves staking tokens to validate transactions.
  • Supply: Bitcoin has a fixed supply of 21 million coins. Ethereum's supply is not capped, but its inflation rate is low and may even become negative.
  • Functionality: Bitcoin is primarily a digital currency, while Ethereum is a programmable platform. This allows Ethereum to support a wider range of applications, including decentralized finance (DeFi), gaming, and supply chain management.

Use cases:

  • Bitcoin: Primarily used for payments, as a store of value, and as a hedge against inflation.
  • Ethereum: Used for a wide range of applications, including DeFi, gaming, supply chain management, and creating smart contracts.

In summary, Bitcoin is a digital currency focused on payments and store of value, while Ethereum is a programmable platform that can host a variety of applications.

Supply Comparison: Bitcoin, Ethereum, and Solana

  

Bitcoin

  • Maximum Supply: 21 million coins
  • Fixed Supply: Bitcoin has a finite supply, meaning no new coins will be created after 21 million are mined. This fixed supply is often seen as a key advantage for Bitcoin, as it can potentially appreciate in value over time due to scarcity.

Ethereum

  • Initial Supply: 72 million ETH
  • Dynamic Supply: Ethereum's supply is not fixed. It uses a mechanism called "proof-of-stake" (PoS) to validate transactions, and a portion of the transaction fees is burned, effectively reducing the supply. However, the rate of reduction can vary depending on network activity. 

Solana

  • Maximum Supply: 489 million SOL
  • Inflationary: Solana's supply increases at a controlled rate, which is determined by a formula. This inflation rate is designed to incentivize staking and support the growth of the Solana ecosystem.

Key Differences:

  • Fixed vs. Dynamic Supply: Bitcoin has a fixed supply, while Ethereum and Solana have dynamic supplies that can increase or decrease over time.
  • Inflation: Solana's supply increases at a controlled rate, while Ethereum's supply can decrease due to transaction fee burning. Bitcoin's supply is fixed.

Money Supply
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