What kind of chain does Bitcoin belong to (What type of currency is Bitcoin)?

What kind of chain does Bitcoin belong to? As a digital asset of the value internet, Bitcoin is considered to be the most important part of the blockchain. In traditional financial systems, the exchange between cryptocurrency and fiat currency becomes a very important issue. However, as more and more funds enter this field, this situation will change. The most mainstream theory in the market is that Bitcoin belongs to a centralized or non-custodial type of blockchain, which is attributed to the fact that Bitcoin itself is a distributed, peer-to-peer network digital asset and also one of the main ecological applications of Ethereum.

So we can divide Bitcoin into two categories: one is the forked coin of Ethereum (DAPPs on Ethereum), and the other is the token of Polkadot (such as DOT). If someone wants to achieve this goal with their own technology, they can develop it by converting the execution of the code through smart contracts into ERC-20 standard tokens based on the Ethereum blockchain, thereby obtaining corresponding profits. What is Bitcoin? Bitcoin is an open-source platform that allows anyone to create, own, and manage Bitcoin and other cryptocurrencies, including Bitcoin wallets, exchanges, and payment processors. But to understand why such a system is needed, let’s start with the definition of Bitcoin.

What kind of currency is Bitcoin

Bitcoin is a type of cryptocurrency primarily used for payments of bills. Bitcoin has the characteristics of tamper-proof, verifiability, and anonymity on the blockchain, and it can be tracked and managed together with other assets. Bitcoin’s transaction fees are much higher than those of other fiat digital currencies. Currently, over 70% of the global population does not have a bank account. If all funds were transferred to one place, transfers or purchases could not be made.

Therefore, according to coinmarketcap data, Bitcoin is one of the highest market capitalization virtual currencies globally, ranking 11th in terms of market capitalization.