Bitcoin Overview

Smart Contract Capability: Limited Using Lightning Network (L2)

Consensus Method: Proof of Work (PoW)

Accessibility: Open Source Public Network

Underlying Cryptocurrency: Bitcoins (BTC)

Bitcoin was proposed in 2008 by an anonymous entity known as Satoshi Nakamoto and first implemented as open-source software in 2009.

Smart Contract Capability

Bitcoin does not have any native smart contract capabilities. The Lightning Network, a non-blockchain Layer 2 payment protocol that interacts with the Bitcoin network, allows for limited smart contract capabilities.

Consensus Method

Bitcoin uses a Proof of Work (PoW) consensus method, in which the network is secured against malicious actors by requiring participants to contribute computer processing power to solve ever increasingly difficult math problems, called ‘Mining.’

Over the past few years, governments around the world have expressed concern over the amount of power used by the Proof of Work consensus method in large blockchain networks like Bitcoin. This has even led to the banning of mining in certain countries and states, as well as outlawing holding the BTC digital asset.

Accessibility

Bitcoin is a public, open-source blockchain that is fully permissionless - anyone that has access to the internet can access the blockchain anonymously and without the permission of any entity, government or otherwise. This does not mean Bitcoin protects your identity in any way - simply that the underlying infrastructure doesn’t act as either an enforcer or a gatekeeper.

Increasingly, countries are requiring crypto companies to implement Know Your Customer (KYC) laws - giving governing bodies real world identities to pair with blockchain wallets. Whether this is a stance you agree with or not, this is not a function of Bitcoin - it is one of government. It applies regardless of the blockchain.