If you have been wondering about the relationship between blockchain and bitcoin, this is the right article for you. A lot of people think blockchain is all about bitcoin but it is not true. In this article, you will understand the relationship between blockchain technology and their differences.
Blockchain is a distributed, decentralized, public ledger that is used to store digital information (Database). Unlike the centralized database where records are processed by the government, blockchain is transparent and the information on it is verified by users agreement. Another advantage blockchain has is its high-level security. Despite the transparency of blockchain, it is super secure because hackers don’t have a particular target to hit. That is, there is no central point for hackers to attack, unlike the centralized database. Most people are not aware that blockchain has wider applications beyond the bitcoin movement. Blockchain can also be used as a system of record, auditing the supply chain and it can also be used as proof of insurance. The most interesting fact about blockchain is that the information on it can’t be copied. Blockchain was developed mainly for bitcoin so without it, there will be no bitcoin and this is the reason people believe that bitcoin and blockchain are the same. Blockchain is like a diary or spreadsheet that contains information about transactions. Each block refers to the previous block and together, they make the blockchain. Each block can be used to record anything from crypto information to voting records and medical data. The basic concept of blockchain was explained by Dr. Garrick Hileman. He talked about the uses of blockchain and the potential applications that could change the global economy. He pointed out the blockchain and distributed ledger technology, areas for potential abuse and misuse: Are there reasons to be cautious of the evolution of blockchain? Are they really unhackable? Cryptocurrencies and crypto assets, the potential of blockchain. These are some of the companies using blockchain technology:
- Mythical Games
- Salt lending
- Centers for Disease Control and Prevention
- AIA Group Insurance
- Prudential Financial
- Abu Dhabi National oil company
Bitcoin is a decentralized digital currency or peer-to-peer electronic payment system where users can anonymously transfer bitcoins without the involvement of a third party. However, anonymity is not 100 percent effective when a user decides to trade bitcoin with his/her personal information. Bitcoin is a cryptocurrency powered by blockchain technology. The major difference between bitcoin and blockchain is that blockchain is about transparency while bitcoin trading is anonymous. Blockchain can be used to transfer all sorts of things including information or property ownership rights while bitcoin is a currency that can be transferred among users and it is stored in something called a wallet.
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