TL;DR

Bitcoin is a cryptocurrency that operates on a decentralized database called blockchain.

The transactions on the Bitcoin network are recorded on a public ledger and verified by a network of nodes located worldwide.

Bitcoin is transparent and permissionless, making it a popular alternative to the traditional financial system.

What Is a Bitcoin?

Bitcoin is a digital form of cash. But unlike the government-issued fiat currencies you're used to, no central bank controls it. Instead, the financial system in Bitcoin is run by thousands of computers distributed around the world. Anyone can participate in the ecosystem by downloading Bitcoin's open-source software.

Bitcoin was the first cryptocurrency, announced in 2008 (and launched in 2009). It allows users to send and receive digital money called bitcoins (with a lowercase b, or BTC). What makes it highly appealing is its inherent resistance to censorship, the impossibility of double-spending funds, and the ability to conduct transactions anytime and anywhere.

What Makes Bitcoin Unique?

Here are a few of the key features that make Bitcoin unique:

1. Decentralization

Bitcoin operates on a decentralized public blockchain, meaning a central authority doesn't control it. Instead, transactions are verified by the network of computers, known as nodes. In addition, anyone can join the network and help secure it.

2. Permissionless

Bitcoin's permissionless nature means that anyone with an internet connection can participate in the Bitcoin network without authorization or permission from a central authority.

Bitcoin allows users to send and receive payments with anyone on the network, regardless of location or identity. This has made bitcoins particularly popular in regions where access to traditional financial systems is limited or non-existent.

3. Limited supply

Bitcoin has a limited supply of 21 million coins hard-coded into the protocol. This means there will never be more than 21 million bitcoins in circulation, which helps prevent inflation.

4. Transparency

All bitcoin transactions are recorded on a public ledger that is visible to all users. This means that anyone can see the transactions that have taken place, including the amount of bitcoin involved and the addresses of the sender and receiver.

In traditional financial systems, transactions are recorded by banks and other financial institutions, and this information is not generally available to the public. Instead, people rely on these institutions to keep accurate records.

5. Divisibility

Bitcoin can be divided into smaller units called satoshis, which are one hundred millionth of a bitcoin. This means that even if the price of a bitcoin becomes very high, people can still use and transact with very small amounts of the currency. This makes bitcoins more accessible to people with limited financial resources and allows for more granular transactions.

How Does Bitcoin Work?

When Alice makes a transaction with Bob, she's not sending money in the way you'd expect. It's not like the digital equivalent of handing him a dollar bill. It's more like she's writing on a piece of paper (that everyone can see) that she's giving Bob a dollar. When Bob goes to send the same funds to Carol, she can see that Bob has them by looking at the sheet of paper.

The sheet is a database called a blockchain. All network participants have an identical copy of it stored on their devices. The participants connect with each other to synchronize new information.

To maintain the security and integrity of the blockchain, Bitcoin uses a consensus mechanism known as Proof of Work (PoW). When a user makes a payment, they broadcast it to the network, where it is verified by other nodes known as "miners". These miners compete to solve a complex mathematical puzzle and must devote computing power to do so. The first miner to solve the puzzle gets to add a new block of transactions to the blockchain.

As an incentive, there is a reward available for whoever proposes a valid block. The reward, often referred to as the block reward, is made up of two components: transaction fees from the transactions within the block and the block subsidy. The block fee is the only source of "fresh" bitcoins. With each block mined, it adds a certain amount of coins to the total supply.

Bitcoin's PoW consensus mechanism is designed to make it expensive to create a block, but cheap to verify that it's valid. Suppose someone tries to cheat with an invalid block. In that case, the network immediately rejects it and the miner is unable to recoup the cost of mining.

What Is Bitcoin Used For?

Bitcoin is primarily used as a digital currency and store of value. It can be used to make purchases online or in person, just like traditional currencies. Anyone with an internet connection can send and receive it, and its digital presence means that it can be transferred globally.

Bitcoin is sometimes used for more private transactions. The transactions are public, and the addresses (public keys) are pseudonymous, though not completely anonymous. In other words, while the transactions are visible on the blockchain, the users behind them are not easily identifiable.

Some people also buy bitcoins as a long-term investment, expecting their value to increase over time. Like gold or other commodities, bitcoins' limited supply and decentralized nature have made it a viable option for investors looking to diversify their portfolios.

A History of Bitcoin

Bitcoin was first introduced in 2008 when Satoshi Nakamoto published a white paper entitled "Bitcoin: A Peer-to-Peer Electronic Cash System". This white paper introduced a new digital currency that would operate on a decentralized system without relying on governments or the banking system.

In January 2009, the Bitcoin protocol was released, and the first bitcoin transaction took place between Satoshi Nakamoto and a programmer named Hal Finney. The transaction involved sending ten bitcoins from Nakamoto to Finney.

After the first transaction, more people began to discover Bitcoin and join the network. The digital currency gained popularity among a small community of tech enthusiasts by demonstrating that Bitcoin could function without a central authority or intermediary.

Bitcoin Pizza is another important milestone in the history of Bitcoin, as it marked the first time bitcoins were used as a medium of exchange for a real-world transaction. On May 22, 2010, a programmer named Laszlo Hanyecz made history by using 10,000 bitcoins to buy two pizzas. The transaction became known as "Bitcoin Pizza Day" and is now commemorated every year on May 22.

Who created Bitcoin?

Satoshi Nakamoto's identity remains a mystery. Satoshi could be a person or a group of developers anywhere in the world. The name is of Japanese origin, but Satoshi's mastery of English has led many to believe that he or she is from an English-speaking country.

Did Satoshi invent blockchain technology?

Bitcoin combines a number of existing technologies that have been around for a long time, and this includes blockchain technology. The use of such immutable data structures can be traced back to the early 1990s when Stuart Haber and W. Scott Stornetta proposed a system for time-stamping documents. Much like today's blockchains, it relied on cryptographic techniques to secure data and prevent it from being tampered with.

How many bitcoins are there?

The protocol sets the maximum supply of bitcoins at 21 million coins. As of 2023, just over 90% of these have been mined, but it will take over a hundred years to produce the rest. This is due to periodic events known as halving, which gradually reduce the mining reward.

What Is Bitcoin Halving?

Bitcoin's halving is a process that reduces the rate at which new Bitcoin blocks are created. Specifically, it refers to the periodic halving events that reduce the block rewards offered to miners. The next Bitcoin halving is expected to happen in 2024, roughly four years after the last halving, which took place in May 2020.

Bitcoin halving is at the core of its economic model as it ensures that coins are issued at a steady pace, getting increasingly difficult at a predictable rate. Such a controlled rate of monetary inflation is one of the key differences between cryptocurrency and traditional fiat currencies, which have an essentially infinite supply.

Is Bitcoin Safe?

One of the main risks associated with Bitcoin is the potential for hacking and theft. For example, in phishing scams, hackers use social engineering techniques to trick users into revealing their login credentials or private keys. Once the hacker has access to the user's account or crypto wallet, they can transfer the victim's bitcoins to their own wallet.

Another way hackers can steal bitcoins is through malware or ransomware attacks. Hackers can infect a user's computer or mobile device with malware that allows them to access the user's Bitcoin wallet. In some cases, hackers can also use ransomware to encrypt a user's files and demand payment in bitcoins to unlock them.

Because bitcoin transactions are irreversible and not insured by any government agency, users must take precautions to protect their bitcoin holdings. This includes using strong passwords, two-factor authentication, and storing bitcoins in a secure crypto wallet that is inaccessible to hackers. It's also important to only download Bitcoin-related software from trusted sources.

Another risk associated with bitcoin is price volatility. The value of bitcoin can fluctuate highly over short periods of time, making it a risky investment for those who are not prepared for the potential losses.

Closing Thoughts

Bitcoin is a decentralized digital currency that has gained significant attention in recent years. It was created to provide an alternative to traditional financial systems and operates on a peer-to-peer network, allowing users to send and receive payments without intermediaries.

While Bitcoin is still a relatively new technology, it's already revolutionizing the way we think about money. As bitcoin and other cryptocurrencies continue to evolve, it will be interesting to see if they become a part of our everyday lives.

Further Reading

What Is a Stablecoin?

What Is an NFT?

What Are Crypto Communities and How to Join One?


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TL;DR

MetaMask is a crypto wallet app and browser extension that by default is connected to the Ethereum mainnet. You can find the extension on the official MetaMask website, which will direct you to the correct place to download it.

To connect to other networks like Polygon, you'll need to add some basic blockchain information to MetaMask. This includes a custom RPC URL, chain ID, and network name. To add Polygon tokens, a token address must be imported.

Learning to add a new blockchain to MetaMask is a transferable skill and can be used to add other EVM networks like BNB Smart Chain.


Introduction

Interacting with the Polygon blockchain requires a compatible crypto wallet such as MetaMask. However, MetaMask doesn’t have Polygon added as a network by default. Setting up your browser wallet to connect to Polygon is simple and can be done in just a few minutes.


Installing and setting up MetaMask

1. MetaMask is available to download and install on Chrome, iOS, or Android through the MetaMask website. Always check if you are using the official website to make sure you’re downloading the real MetaMask extension.


2. After downloading and installing the extension, you’ll be greeted with the MetaMask welcome page. Click [Get Started] to begin.


3. If you’re creating a new wallet, click the [Create a Wallet] button. You can also import an old wallet using its seed phrase with the [Import wallet] option.


4. MetaMask will ask you if you’d like to share anonymous usage data with them to help improve the extension. Accepting or refusing this will not affect your MetaMask usage.


5. Choose a secure password to log in to your wallet from your browser. Note that this is not your seed phrase. The password is a security measure to prevent anyone using your device from accessing your wallet. If you forget your password, you can always access your crypto with your seed phrase.


6. After choosing your password, MetaMask will present you with information regarding your wallet’s seed phrase. Make sure to read through it if you aren’t familiar with how a crypto wallet works.


7. You’ll now be presented with your seed phrase. Click the lock to view the words and take note of them in the correct order. Keep the phrase in a secure place (preferably offline) and never share it with anyone. This string of numbers is the final backup of your wallet and its contents. Click [Next] to continue.


8. You’ll now have to repeat your seed phrase by selecting the words at the bottom of the screen in the right order. Click [Confirm] once this is complete.


9. Your MetaMask wallet will now be set up ready to use. Click [All Done] to view your wallet.


10. To make MetaMask easy to access, you can pin it to your Chrome browser by clicking the puzzle icon and pinning MetaMask to the toolbar. After the initial setup, MetaMask will only be connected to Ethereum. Next, we will see how to connect Metamask to Polygon.


Configuring the wallet

1. Adding Polygon support to your wallet involves adding some network details to the extension. First, open MetaMask and click the network dropdown menu.


2. Now, click [Add Network] on the pop-up.


3. You’ll need to add the following details on the [Add a network] page that will open. Click [Save] when you’re finished.

Network Name

Polygon

New RPC URL

Choose any of the following:

https://polygon-rpc.com

https://rpc-mainnet.maticvigil.com 

Chain ID

137

Currency Symbol

MATIC

Block Explorer URL

https://polygonscan.com/


4. You’ll now successfully be connected to the Polygon network.


Adding Polygon tokens to MetaMask

For Polygon tokens other than MATIC to appear on the wallet UI, you will need to add them manually. Note that your wallet can still receive tokens that haven’t been imported.

1. First, head to PolygonScan and find the token contract and details of the token you’d like to add. If the token is not on PolygonScan, make sure to get the contract address from the project’s official website or social media channels. Be careful with fake contracts created by scammers.


2. Return to MetaMask and click [Import tokens].


3. Copy in the token’s contract address and MetaMask should automatically fill in the rest of the details. If not, add them manually. To finish, click [Add Custom Token].


4. Click [Import Tokens].


5. Your wallet will now successfully display the balance of the token added.



Closing thoughts

With Polygon set up in MetaMask, you’re free to start making transactions, collecting NFTs interacting with DeFi DApps, and managing your crypto. You can even swap tokens without leaving the extension. MetaMask isn’t just for the Ethereum network and Polygon either; it actually supports the whole Ethereum Virtual Machine (EVM) blockchain ecosystem, including BNB Smart Chain. By following our guide, you’re now set up to add even more chains and start exploring.

TL;DR

NFTs are tokenized, collectible items valued for their uniqueness and rarity, popular on BNB Chain and Ethereum. The value of NFTs relies on their authenticity and scarcity, so it can be helpful to take a closer look at the token on a blockchain explorer.

NFTs have more use cases than just crypto art, and BNB Chain now has an innovative non-fungible token ecosystem. Due to the recent popularity of NFTs in the news and huge selling prices, it’s easy to see similarities with the 2017 ICO craze. But the two are, in fact, very different things. 

To understand more, we cover the basics of NFTs based on common misconceptions and frequently asked questions.


Introduction

When it comes to non-fungible tokens (NFTs), art and collectibles are never too far behind. These unique tokens are making waves with huge sales of graphic designers and visual artists. Artist Beeple is one of the most popular examples. His NFT called "Everydays - The First 5000 Days" was auctioned for roughly $69 million.

NFTs are hugely popular, but the topic goes much deeper than just newspaper headlines. Understanding and exploring the world of NFTs is the next step to take if you want to dig a bit deeper. There are many places to find them, use cases to look at, and even misconceptions to clear up.



What is an NFT?

An NFT is a cryptoasset representing something unique and collectible using blockchain technology. The NFT could be in demand because it has been created by a famous artist or composed by a world-class musician. The token could also be helpful in a game or wanted to complete a collection.

You may have already heard of NBA Top Shot, a digital collectible basketball card game. The cards work just like physical trading cards do, but their authenticity is guaranteed through blockchain technology. Some cards are rarer than others, and each has a different value.

Simply put, a non-fungible token cannot be faked or copied. If we look at the definition of fungibility, we can learn a bit more about what makes an NFT special:

Fungibility is an asset’s ability to be interchangeable with assets of the same type.

One bitcoin is equal and tradeable for another bitcoin. A #1/99 Keldon Johnson Holo Icon Top Shot card, on the other hand, is not interchangeable as only one exists.


What can I do with an NFT? Are they tradeable?

NFTs come in all shapes, sizes, and even use cases. Purely collectible digital art NFTs are pretty limited in what you can do with them. You can trade them, of course, but an NFT of a photo isn’t much different from a regular print in terms of utility.

Still, some NFTs have actual uses in games, like the famous CryptoKitties on the Ethereum blockchain. In this case, a collectible cat can breed to pass its traits down onto new cats.


NFTs are commonly used by financial platforms too. There is a massive market for PancakeSwap’s NFTs that are artistic and convertible into cryptocurrency. This unique combination means that people can speculate on the future price of the cashable amount. 

These NFTs all have in common the ability to trade them for different digital assets. This means you can buy or sell NFTs using ETH, BNB or other cryptocurrencies. Still, each piece of NFT is unique (i.e., they are not interchangeable).



How is the rarity and value of an NFT determined?

Determining how much an NFT is worth depends on what it represents. When it comes to crypto art, it’s quite similar to any other kind of art. We need to think about who created it, the artistic value of the piece, and how in-demand it might be from other collectors.

If an NFT is part of a limited run or series, specific numbers are often more valuable than others. We usually see #1 as desirable and other numbers people find collectible like #13 or #7. Value and rarity depend on a combination of factors, like the ones mentioned above. You can see from these Top Shot NFTs how their ranking affects the price.


For game-based NFTs, there may be financial benefits from specific NFT items or creatures. If they provide you with an extra $100 in staking rewards, then it’s going to be worth at least $100 without taking into account its artistic value.

PancakeSwap’s NFTs are slightly different. Some of their tokens can be converted into CAKE - the platform’s cryptocurrency. So if, for example, your cuddly rabbit can give you 10 CAKE and the price of CAKE is $20 (USD) per token, then your NFT is worth at least $200.



Where can I find NFTs?

If you want to explore NFTs on offer, there are a few different places to start looking. NFT marketplaces have a variety of non-fungible tokens on sale, from both famous artists and amateurs. There are loads out there to choose from, but some of the biggest are OpenSea for Ethereum-based NFTs and Treasureland or BakerySwap for BNB Chain-based NFTs.


The number of marketplaces keeps growing, and some are more specialized than others. If you are interested in buying something from a famous artist, make sure to check and see how genuine the marketplace is. You can also find NFTs by playing blockchain games or participating in decentralized finance (DeFi) projects.


What are the main NFT projects on BNB Chain?

BNB Chain benefits from a healthy NFT community on the blockchain, and it’s not all art and marketplaces either. There are NFT games and even collectibles with staking or financial benefits.

As mentioned before, BakerySwap and Treasureland are two of the largest NFT exchanges. BakerySwap also allows you to create NFTs quickly and for a reasonable price. When it comes to the art and creative side of NFTs, these are great places to start.

There are also blockchain games like Battle Pets and DeFi protocols experimenting with NFTs in more financial ways. PancakeSwap takes the number one spot for traded NFTs on Treasureland, making it a massive project for NFT usage. You can find out more info on these NFT projects by following the link.


Are NFTs the new ICO?

In short, no. While there are some slight similarities in the money NFTs raise and their recent hype and popularity, that is as far as it goes. An initial coin offering (ICO) is a method used for project fundraising by selling project tokens. It rose to popularity around 2017 and became infamous for the number of scams and failed projects taking part.

It’s easy to see why some people might get the idea that NFTs are similar to ICOs. Recently these digital collectibles have sold for millions of dollars. They are also all over the news and seen as an opportunity to make some “easy money” with crypto. These two points are where the similarities between the two end. Still, it’s crucial that you do your own research before risking your funds because not all projects are legit.



How do you verify the authenticity of an NFT?

Proving that your NFT is legitimate can be a bit tricky, depending on what you’re looking for. No doubt people are uploading other artist’s work and pretending to be them. In this case, you would have to get in touch with the artist to confirm they are selling NFTs of their work. 

An NFT’s creator should supply you with some kind of identifier for you to check. Most of the work will involve looking at your NFT on a blockchain explorer such as BscScan. When it comes to blockchain, we take a “don’t trust, verify” approach.

Helpful information could include the minting date and the wallet address that minted the NFT. You could also use the transaction history ID to see if your NFT matches up. This method is better than just checking the image or file associated with your collectible. If we look at the digital artist Beeple’s recent sale, Christie’s has given the token ID, token contract, and wallet address for validation.


There is sometimes a URL to the file or an IPFS link to verify its underlying content. Both, however, can be used by someone else when creating a fake token. In most cases, you’re best off checking with the creator first.



Closing thoughts

When it comes to NFTs, new use cases and developments are constantly coming out. It’s easy to forget that the technology is as recent as 2017 and still in its infancy. Before you start investing money into these tokens, make sure you understand precisely what you’re getting into and how to use them. It’s easy to just think of NFTs as art, but there is a whole world of projects using them in different ways.

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