Are blockchain and bitcoins the same?
NO.
A bitcoin is a virtual concept that is a type of cryptocurrency that can be stored on a person’s local hardware, also known as cold storage.
So what is a blockchain?
Every monetary transaction goes through a central authority like a government or a bank. While transferring money, the final payment may get delayed. But cryptocurrencies ensure instant fund transfer because there is no involvement of a third-party entity in the process.
How are these transactions accounted for?
Cryptocurrencies like Bitcoin use a technology called blockchain to ensure a fool-proof record of all the transactions happening across the globe. A blockchain is a decentralized and digital public ledger of all transactions in a peer-to-peer network. This public ledger is not vulnerable as it is not stored at a central location.
Before looking into how blockchain works, let us understand what a block is.
A block is a file that contains a series of transactions that were carried out in a time period. Each block contains a link to the previous block and hence maintains the sequence of transactions.
Let us see how a blockchain works.
Why is blockchain in the current trend?
Since a blockchain is a public ledger that can be seen by everyone using it, there are almost negligible chances for illegal and fraudulent transactions. The concept can not only be used for financial requirements but anywhere.
How is blockchain useful?
Some of the applications of blockchain apart from cryptocurrencies are in:
- Stock markets
- Financial sector
- Voting
- Supply chain management
- Self-driven cars
- Stock markets
- Financial sector
- Voting
- Supply chain management
- Self-driven cars
