Nonetheless, our brief look back at Bitcoin's history is a great reminder of how much has unfolded in a relatively short space of time. Fourteen years ago, Bitcoin was an idea still formulating in the back of Satoshi Nakamoto's mind. He hadn't even released the whitepaper. Since then we've seen incredible growth, a fair share of hacks and dodgy dealings, as well as a host of other firsts and significant milestones. How does Bitcoin work? As the very first block ever created, the genesis block is the start of the immutable database that we call today the Bitcoin blockchain. It is the first example of a peer-to-peer digital currency secured by solid cryptographic principles.
The third blockchain innovation is known as “smart contracts,” embodied as a derivation of Ethereum (another kind of altcoin). Vitalik Buterin, the co-founder of Ethereum, was an initial contributor to the Bitcoin codebase. However, he soon became concerned with Bitcoin’s programming limitations. Unable to convince the Bitcoin community to modify the technology’s codebase, Buterin set out to build a separate platform known as “Ethereum.” Today, Ethereum is the second most valuable cryptocurrency worldwide. Blockchain Back then, Bitcoin was worth cents on the dollar, and to order two family pizzas worth $30, Hanyecz paid 10,000 Bitcoins! What was later considered as the first-ever purchase in Bitcoin, also became the world’s most expensive pizza, as 10,000 BTC today is worth more than worth today more than $300 million.