Bitcoin is an end-to-end electronic payment system whose Whitepaper was published on October 31, 2008 by the person or persons named Satoshi Nakamato after the 2008 Mortgage crisis.
With the whitepaper, Bitcoin, which has a decentralized and transparent structure, emerged as a cryptocurrency. The Bitcoin blockchain was started to be used with the first transfer made in January 2009 and was named “1st generation blockchain” with the popularity it gained in a short time.
Thanks to its distributed, decentralized and transparent structure, Bitcoin has risen against today’s financial order in a very short time. With the increase in the use of Bitcoin, the limited supply and the technology it brings, it has been adopted by many investors and financial institutions.
Bitcoin has enabled the development of many leading sectors and technologies with its pioneering nature and technology in the crypto money world. The fact that the Bitcoin blockchain structure is transparent and its supply is limited, in addition to the technological revolution brought by Bitcoin, has caused it to be seen as an investment with low inflation and high potential for many investors.
After its birth, Bitcoin caused the birth of many different cryptocurrencies due to its inability to provide sufficient capacity in terms of both speed and scalability. These cryptocurrencies are called “alternative coins”, in other words “altcoins”. These cryptocurrencies, which are developed in a similar or different structure with the Bitcoin blockchain, can be programmable and have a faster structure.
While creating alternative cryptocurrencies, competitive advantage has been taken advantage of by having different features at various points and new types of cryptocurrencies have emerged. The main differences between these cryptocurrencies are the maximum amount of supply that can be produced in general, the algorithms used and the types of blockchains (private/shared, permissioned/unauthorized consensus) as examples.