As we see Bitcoin adoption growing steadily over time with an ever increasing market cap, you may have to stop and ask yourself what all the hype is about. You might be thinking bitcoin is just another digital currency which is nothing new. In fact digital currencies have existed on the internet since as early as 1989 with the invention of Digicash. However, you might be surprised to learn that Bitcoin is not just a new form of digital currency. Bitcoin is both a digital currency and virtual currency.
But what is it that makes Bitcoin so different behind the scenes? Well it is based on blockchain technology like everyone says of course! But what does that mean? Why is that even relevant?
You don't have to understand the blockchain technology to understand this:
Bitcoin is built on technology that has solved a fundamental problem in network computing that remained unsolved for over 30 years. This problem has many different names but could be called the Two Generals' Problem. The proposed solution to this problem using the blockchain is described in an email by Satoshi Nakamoto @ https://www.mail-archive.com/cryptography@metzdowd.com/msg09997.html
Bitcoin is not just a new digital currency, it is a new technology all together that is made possible by the solution of this decades old network computing problem. Once this invention was released to the world it was widely adopted so much so that there are now over 1000+ projects for cryptocurrencies and new blockchain technologies in the making today. Cryptocurrencies have attracted investors from all over the globe and the market cap today is measured in the hundreds of billions of USD.
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