With the increasing growth of cryptocurrency and the knowledge of it, it has become expedient that we establish the differences between specific terms that have been overused. This wave and not so novel way of investments has had people wondering what the terms are, not to talk of how to go about investing and analyzing. This article is meant to explain what blockchain technology is, and to establish an understanding of the differences that exist between blockchain and bitcoin.
First things first, what is Blockchain Technology? A succinct definition of this would help in guiding through this article so that nothing is left unclear. A blockchain in layman terms is a series of immutable records of data that is time-stamped and managed by a collection of computers that are not privately owned or belonging to any single entity.
The blockchain network is like a democracy with no centralized authority. Everyone can access the system any time and as he or she pleases since it is shared. This means that there is transparency in this system and everything that is built can be seen. Also, you get to account for everything you do on and with the platform. It is like building blocks of information – For every block is a transaction that was made on the network. Just as hard as blocks are, it is impossible to change or erase a block that has been created, as data on each block are encrypted and highly secure.
The terms that you need to note when trying to define blockchain would be shared ledger, permissions, agreement, and contracts. These words explain the processes of making a transaction and seeing it through to the very end.
Blockchain can be all that and more, but one thing it is not is bitcoin or any cryptocurrency that there may be. You can say, cryptocurrencies are one of the things you use on the blockchain. Like cryptocurrencies or token, assets are owned and transacted via this blockchain network, and these assets can also be either tangible or intangible.
Bitcoin is a currency that is used in the digital space, but not any digital space. It removes the need for middlemen such as banks and allows for a direct transaction and verification.
Bitcoin came into the system sometime in 2008, when Satoshi Nakamoto developed it. It used to be only mined for the first two years before it started being traded and valuable currency in the blockchain world. Since then on, the developer has remained anonymous, but his creation has continued to live with anyone having access to contribute to the software.
With the understanding of the difference between blockchain technology and bitcoin, keeping up with the system and getting updated on the most recent crypto news would help beginners adjust quickly into the system.
There are quite some sites and apps to check for Bitcoin price & analysis. A glance into reviews would help newcomers get ahead quickly in this process of adjusting.