From BTC to 10,000 "chains" Pentium: Understanding the basic logic of the Cryptocurrency world

Since the birth of the first digital currency coin in 2009, Crypto Assets have not only built a large-scale global industry, but also triggered a wave of innovation in distributed networks, cryptography, and even social organizational models. So, what is the blockchain that supports all of this? How does Crypto Assets operate?

🔷 Blockchain: an open 'collective ledger'

In traditional systems, transaction records often rely on centralized institutions such as banks, with complex processes and single-point risks. The essence of blockchain, however, is a distributed digital ledger, with its core value lying in establishing a mechanism of trust - allowing for secure storage and exchange of assets without the need for intermediaries.

It has several key features:

· Open and transparent: Data is visible to network participants;
· Immutable: Once information is on the chain, it is extremely difficult to be modified;
· Decentralization: not controlled by a single institution, strong resistance to interference;
· Security encryption: Ensure transaction security through cryptography.

🔶 BTC: The creator of digital gold

BTC is the first successful decentralized Cryptocurrency that relies on a peer-to-peer network, freeing itself from reliance on central authorities.

Participants in the network are called "miners," who compete with computing power to verify transactions, maintain system security, and receive BTC as a reward. Each transaction verified through encryption is timestamped and permanently recorded on the blockchain, forming an irreversible transaction history.

As the cornerstone of the Crypto Assets world, BTC still accounts for more than half of the market value, and is recognized as the benchmark for value storage.

💠 Shanzhai coin: Evolution and Functional Differentiation of the Ecosystem

After Bitcoin, many other cryptocurrencies emerged, collectively known as "altcoins". This term is a combination of "alternative" and "coin", meaning they are an alternative choice to BTC.

Unlike BTC, which is primarily positioned as 'digital gold,' many altcoins are dedicated to expanding more application scenarios. For example:

· Ethereum: Introduces smart contract functionality, allowing blockchain to execute programmatic protocols, becoming "programmable financial infrastructure";
· Tether coin: It is a stablecoin pegged to the US dollar, designed to reduce price volatility and serve as a value scale in trading.

It can be seen that the altcoin is not simply an imitation, but a diversified exploration based on BTC to meet different needs.