Bitcoin, Ethereum, and Solana: A Framework for Understanding Three Blockchains
The Bitcoin blockchain is designed to enable peer-to-peer transfers of value without relying on centralized intermediaries, such as banks or governments. Introduced in 2009, it operates on its own decentralized ledger that records and verifies transactions.
Bitcoin's scarcity is a key feature, with a fixed supply of 21 million coins. New bitcoin is introduced at a predetermined pace that slows over time through block reward halving, supporting its positioning as a scarce digital asset often compared to gold.
Ethereum, on the other hand, is a smart contract blockchain that supports decentralized applications and digital assets through programmable code. It processes transactions and executes smart contracts across a distributed network of validators using proof-of-stake, where participants stake ETH to help secure the network and validate transactions in exchange for ETH rewards.
Solana is another smart contract blockchain built to run applications and move on-chain assets at scale, with a focus on high speed and low costs. It combines proof-of-stake with proof-of-history (a timing system) to help order transactions and process many at once, supporting high throughput and typically low fees.