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Three Blockchains: Store of Value, Programmable Settlement, High-Speed Execution Understanding how Bitcoin, Ethereum and Solana compare.

What are these three blockchains?

BITCOIN (BTC) ETHEREUM (ETH) SOLANA (SOL) A tamper-resistant digital ledger A programmable blockchain A high-performance smart built primarily to store and where smart contracts run, contract blockchain optimized for transfer value. often described as a global, speed and transaction volume. decentralized computing platform.

Bitcoin Fundamentals: Scarcity and Decentralization Digital value transfer

WHAT IS BITCOIN? Bitcoin is a cryptocurrency 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 blockchain—a shared network that records and verifies transactions.

HOW THE BITCOIN NETWORK WORKS Bitcoin’s blockchain functions as a decentralized ledger that records transactions in chronological order. Transactions are grouped into “blocks,” validated by the network using proof-of-work and added to the blockchain at regular intervals.

KEY FEATURES „ Scarcity: Bitcoin has a fixed supply: The protocol limits total issuance to 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. „ Immutability/Decentralization: No single entity controls the network; once recorded, transactions generally cannot be altered without broad network consensus. „ No Staking Yield: Because bitcoin uses proof-of-work, there is no staking or income component.

COMMON USE CASES Store of value, inflation hedge, “digital gold,” sovereign reserves and peer-to-peer payments.

WHO HOLDS IT Sovereign entities, corporate treasuries and individuals seeking a scarce, non-correlated asset.

KEY TAKEAWAY Bitcoin’s decentralized structure and fixed supply distinguish it from traditional currencies and many other digital assets, reinforcing its positioning as a simple, durable monetary asset rather than a programmable platform.

Ethereum Fundamentals: Smart Contracts and Institutional-Grade Settlement Programmable settlement, redefined

WHAT IS ETHEREUM? Ethereum is a smart contract blockchain that supports decentralized applications and digital assets through programmable code—enabling developers to build financial applications, marketplaces and tokenized assets on-chain.

HOW THE ETHEREUM NETWORK WORKS Ethereum 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.

KEY FEATURES „ Programmability: Smart contracts allow developers to build decentralized finance (DeFi) applications, digital marketplaces and tokenized assets. „ Decentralization + security: No single entity controls the network; transactions are validated by a distributed set of participants (validators). „ Ecosystem depth: Ethereum supports one of the largest on‑chain ecosystems for DeFi, stablecoins, NFTs and tokenized assets. „ Adaptability: Ongoing network upgrades aim to improve scalability, efficiency and long‑term sustainability. COMMON USE CASES DeFi applications (including exchanges and lending), stablecoins, tokenized assets, NFTs/digital ownership and broader on chain financial activity.

WHO BUILDS ON IT Developers and institutions powering on‑chain financial infrastructure and applications.

KEY TAKEAWAY Ethereum is a leading smart contract blockchain that supports decentralized financial applications, tokenization and on-chain innovation, with a programmable design and broad ecosystem that distinguish it from value-transfer-focused blockchains, like Bitcoin, and traditional financial systems.

2 MORGAN STANLE Y INVESTMENT MANAGEMENT | THREE BLOCKCHAINS