A second-generation blockchain, capable of running applications

Bitcoin vs Ethereum

The Ethereum blockchain is a second-generation blockchain that possesses the capability to run applications. In contrast, Bitcoin serves as the quintessential first-generation blockchain. Bitcoin operates on an open, public, and permissionless network, with its primary function being the security of the Bitcoin cryptocurrency (token).

Ethereum, also operating on an open, public, and permissionless blockchain, shares similarities with Bitcoin and introduces its native token known as Ether. However, a significant distinction lies in Ethereum’s versatility. Unlike Bitcoin, which serves a single purpose, Ethereum empowers developers to program and deploy various types of applications on its blockchain.

Ethereum The Internet Of DApps

Ethereum can be conceptualized as the Internet of decentralized applications (dApps), constituting a vast global network of computers capable of executing any application without relying on third-party service providers or platform owners, such as Google, Amazon, or Facebook/Meta.

While Non-Fungible Tokens (NFTs) can be implemented on multiple blockchains, our discussion here will primarily focus on Ethereum, which is currently the largest blockchain supporting NFTs, to avoid unnecessary complexity.