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Blocks typically contain information such as a time stamp, Crypto galore and wallets, too
and a block header with additional meta data. Blocks can
vary in size; a Bitcoin block is typically four megabytes. While bitcoin was the first cryptocurrency to enter
the mainstream, there are literally thousands of
Blockchain has applications well beyond Bitcoin. For cryptocurrencies in existence today.
example, it is used in supply chain management to track
goods and ensure authenticity. It has been considered Ethereum is the second largest cryptocurrency by market
and tested as a means for securing elections. Screven capitalization. But unlike Bitcoin, which primarily
county in southeastern Georgia, in fact, became the first functions as a digital currency, Ethereum is a decentralized
jurisdiction in the United States to secure election results platform that allows developers to build and run smart
using blockchain technology in 2024. contracts and decentralized applications.

Additional applications include real estate and land title Cryptocurrencies are totally digital; they have no physical
management, digital art and non-fungible tokens (NFT), form. However stablecoins, a form of digital currency, are
smart contracts, and auditing and compliance. pegged to physical forms with intrinsic value, such as the
U.S. dollar and gold.
Bitcoin: supply is limited
Cryptocurrencies are held in crypto wallets. They are
Unlike traditional currency, cryptocurrency does not designed to store an individual's private key, keeping
roll off a printing press. Bitcoins, for example, are crypto accessible at all times. They also allow for sending,
created through mining, which involves the solving of receiving and spending cryptocurrencies like Bitcoin.
complex mathematical equations to verify transactions
on the blockchain network, explained the Bitcoin Mining Unlike normal wallets, which can hold actual cash, crypto
Council, a forum of Bitcoin miners. This takes time and wallets technically don't store crypto. Instead, crypto
requires massive amounts of computing power. wallets keep an individual's private keys—the passwords
that allow an individual to access their cryptocurrencies. If
The New York Times reported in 2021 that Bitcoin mining you lose your private keys, you lose access to your money.
consumed approximately 91 terawatt-hours (TWh) of
electricity annually, surpassing the annual electricity "That's why it's important to keep your hardware wallet
usage of Finland, a country with about 5.5 million residents safe," stated the cryptocurrency exchange Coinbase.
(Coinbase was recently added to the S&P 500, replacing
The process could be greener, and some miners are said the spot held by Discover, which was acquired by Capital
to be experimenting with alternatives, but no one knows One.)
the extent of that because the very nature of bitcoin is a
decentralized currency created by anonymous miners. Crypto wallets range from user-friendly apps to more
complex security solutions. They include:
There are only 21 million bitcoins available to be mined.
To date, 19 million have been mined and are in circulation. • Paper wallets, where keys are actually written on
The Bitcoin Mining Council estimated that all bitcoin will a physical medium, like paper, and stored in a safe
be mined by 2140. If a bitcoin is lost or destroyed, it cannot place. "This, of course, makes using your crypto
be recovered, which will decrease the total supply and harder, because as digital money, it can only be
increase the overall value. used on the internet," Coinbase noted.

There is a complex fee structure around Bitcoin mining. • Hardware wallets, in which keys are stored in
Suffice it to say that a successful miner receives a block thumb-drive devices and kept in a safe place. They
reward—currently about 3.125 bitcoins—plus transaction are only connected to a computer when you want
fees. Miners earn both: the reward for validating a new to use your crypto.
block and the fees paid by users to have their transactions
confirmed. • Online wallets are keys stored in an app or other
software.
Once all bitcoins are mined, miners will rely solely on
transaction fees for compensation. These fees vary based Each type of wallet has distinct tradeoffs. Paper and
on the size of the transaction and the level of demand for hardware wallets are harder for malicious users to access
block space. because they are stored offline, but they are limited
in function and risk being lost or destroyed. Online
The faster a user wants their transaction confirmed, the wallets, offered by the major exchanges, like Coinbase,
more they are willing to pay in fees, River.com, a bitcoin- provide more security. But there is a downside. Because
only financial services company, noted on its website. an individual's private information is stored online,
protection against hackers is dependent on the wallet
provider's security measures.

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