Start with the network, then the asset
Bitcoin is both a payment network and the name commonly used for its native asset, bitcoin (BTC). The network lets participants check transfers against shared rules. Owning bitcoin does not mean owning shares in a company called Bitcoin.
A blockchain groups transactions into linked blocks. Participants independently check that proposed transactions and blocks satisfy the rules. The record is designed to make accepted history difficult to change; it is not a promise that every application or every claim recorded on it is trustworthy.
Follow a payment
A wallet prepares a transaction and uses a private key to authorise it. The transaction is broadcast, checked and, if accepted into a block, gains a confirmation. Additional blocks provide further confirmations. The recipient’s address tells the network where the payment is going; the private key authorises spending.
Fees pay for using the network. Sending a transaction is different from having it confirmed, and services can require different numbers of confirmations before crediting a payment.
Coins, tokens and smart contracts
A coin is usually the native asset of its blockchain: BTC on Bitcoin and ETH on Ethereum are examples. A token is usually issued using an existing blockchain. Multiple tokens can share the same network, while similarly named tokens can exist on different networks.
A smart contract is software that runs according to a blockchain’s rules. It can define token transfers or other interactions. The label does not establish that the code is safe, that its operator is trustworthy, or that it creates a legal contract.
Takeaway: always identify the asset, the network it uses and the permissions involved before treating two crypto products as equivalent.
Further reading
Provider documentation explains particular designs. It is not a product endorsement.
