Thread by @Nihar_Thummar

Bitcoin is not just a currency. It is 3 layered technology stack.

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The Word Bitcoin is used to simultaneously denote three different things, it might be confusing for beginners. Let me Break it out so that you can understand it at ease.

✨Three layers of Bitcoin technology stack

1) First / Base layer- Bitcoin Blockchain: Underlying decentralized ledger
2) second / middle layer- Bitcoin protocol and client: Software programs that conduct transactions
3) Third/ Top layer- Cryptocurrency: Bitcoin (BTC)

✨First layer

The First layer is the blockchain. The blockchain is the decentralized transparent ledger with the transaction records- the database that is shared by all network nodes, updated by miners, monitored by everyone, and owned and controlled by no one.

✨Second layer

The middle tier of the stack is the protocol - the software system that transfers the money over the blockchain ledger.

✨Top layer

The top layer is the currency itself, Bitcoin, which is denoted by BTC or btc when traded in transaction exchanges. There are hundreds of cryptocurrencies, of which Bitcoin is the first and the largest.

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