Everyone has heard the stories about average Joe investing nominal amounts into bitcoin and coming out as a millionaire within a year.
Of course, we all want to be millionaires in a minute. Who doesn't want to make money hand over fist, making you rich overnight?
The problem is many people don't understand anything about cryptocurrency, blockchain, or the difference between Bitcoin and Ethereum.
If you want to learn more about these two vastly different types of cryptocurrency and how to make them work for you, read on!
What are Cryptocurrency and Blockchain?
First, we should start with understanding the basics about cryptocurrency.
Cryptocurrency is a digital form of money that can be transferred from one entity to another. The technical definition is entries in a database that cannot be changed unless certain parameters are met.
This is actually the definition of all currency when you think about it. When you make a bank deposit, your money gets added to a ledger (database) and the bank holds it for you. No one can change that entry on the ledger unless they have the right credentials.
Blockchain cuts out the need for a middleman in monetary transactions (the banks). It is essentially a ledger with multiple pages of cryptocurrency transactions which cannot be altered after they are verified by computers using complex mathematical equations.
Bitcoin: The Original Cryptocurrency
Bitcoin was created 10 years ago by Satoshi Nakamoto, who has yet to reveal his identity to the media.
He created a form of digital money that is able to be transferred via peer to peer exchange instead of requiring a third-party entity like a bank.
It is ultimately just a simpler way for one person (or business) to make a transaction with another.
Bitcoin is a decentralized currency because the computers used to compile the ledgers are owned by many people all over the world
Ethereum: The New Frontier in Cryptocurrency
Ethereum is another type of decentralized cryptocurrency that also uses blockchain for their ledger keeping.
It can be used as a form of peer to peer transactional money like Bitcoin.
The big difference between Ethereum and Bitcoin is that Ethereum has additional capabilities that can be automated.
For instance, you can program it to automatically proform a transaction for a certain amount on a certain date.
This added skill makes Ethereum much more useful than Bitcoin for businesses and people alike because it can make money for you without you having to do any of the work.
Integrating Blockchain to Better Your Business
Because Ethereum is so good at being automated, it is ideal for creating smart applications and decentralized applications (DApps) to work for you and/or your business.
DApps will make you money in what is called tokens just by existing, whereas smart contracts will automatically verify and apply a contract based on preset terms. Both can be used to do business on your behalf, making money for you.
The good news is that there are companies that develop those programs tailored to your needs. Click here to get assistance with creating one of these DApps or smart contracts.