The Start of Bitcoin
Bitcoin began with a whitepaper written in 2008 by a person or group using the name Satoshi Nakamoto. The paper introduced a set of rules for a new kind of database called a blockchain. This blockchain acts like a ledger, recording every Bitcoin transaction.
The whole network of computers helps check and protect the blockchain. People called "miners" use computers to keep the blockchain running, and they earn Bitcoin as a reward. These rules together are known as the Bitcoin protocol—and they are what Bitcoin is.
Protocols Beyond Crypto
Protocols are not just used in crypto—they are the foundation of the internet. For example, email runs on multiple protocols. The "HTTP" you see in a web address? That stands for "Hypertext Transfer Protocol."
The Power of the Bitcoin Protocol
The Bitcoin protocol showed that it’s possible to send digital money safely online. It inspired thousands of other digital currencies, each with its own protocol. Over the last decade, new ideas in cryptography and computing have created even more possibilities.
Why Are Protocols Important?
Protocols make decentralization possible. That means cryptocurrencies are shared across many computers, without one single controller like a bank.
One of Bitcoin’s biggest achievements was solving the "double-spend problem." That’s when the same digital money could be spent more than once. With Bitcoin, users don’t have to worry if their money was already used—just like not having to worry if a concert ticket has already been scanned.
New Crypto Protocols
Since Bitcoin, many new rule sets (protocols) have appeared. There are now thousands of cryptocurrencies, each with its own unique protocol.
One of the main features of the Ethereum protocol is something called "smart contracts." These are bits of code that run automatically when certain conditions are met.
Many new protocols have been built on Ethereum to support decentralized finance (DeFi) services like lending, saving, and even insurance.
More Than Just Ethereum
Ethereum isn’t the only smart contract platform. New blockchains like Polkadot have joined the competition, offering different ways to build and run decentralized apps.
