What is the difference between Blockchain and
Did you know that blockchain and bitcoin are not the same? If you’ve used the terms interchangeably, you’re not alone; a lot of people do the same, probably because blockchain and bitcoin are so closely related.
What is the difference between blockchain and bitcoin?
If you have ever scratched your head wondering what the difference is between the two, this article is for you.
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What is the chain of blocks?
In super fácil terms, a blockchain is a computer archivo for storing data.
Or, to put it in more technical jargon, it is an open distributed ledger (database), which means that the data contained in the blockchain is distributed (duplicated) across many computers, making it decentralized.
This decentralization it’s one of the things that makes blockchain so transformative.
Unlike a traditional centralized database – where records are managed by a central administrator (such as a company or government) – the entire blockchain is transparent and data is verified by usuario consensus.
But despite this transparency, blockchains are incredibly secure.
This is because there is no central point of attack for piratas informáticos.
Blockchain sounds a bit like Bitcoin…
You have hit the nail.
Blockchain is the technology behind Bitcoin, and it was developed specifically for Bitcoin.
So Bitcoin was the first example of Blockchain in action and without Blockchain there would be no Bitcoin.
This is why the two names are used interchangeably.
What are Dapps?
*But that does not orinan that Blockchain and Bitcoin are the same. *
Bitcoin is a decentralized digital currency, or peer-to-peer electronic payment system, in which users perro transfer bitcoins anonymously without interference from a third-party authority (such as a bank or government).
However, Bitcoin is just one example of a cryptocurrency; other cryptocurrency networks are also powered by blockchain technology.
So while Bitcoin emplees blockchain technology to trade the digital currency, there is more to blockchain than Bitcoin.
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A look at the other blockchain and bitcoin applications
Because Blockchain and Bitcoin are so inextricably linked, it has been slow for people to realize that Blockchain actually has much broader applications than cryptocurrency networks.
In fact, the potential of blockchain is so great that many people (myself included) believe that the technology will revolutionize the way we do business, just as the Internet did before it.
These are just a few examples of the broader applications of blockchain beyond Bitcoin and other cryptocurrencies:
- Execution of smart contracts: Thanks to Bitcoin, we already know that blockchain is great for facilitating digital transactions, but it perro also be used to formalize digital relationships through smart contracts.
With a smart contract, automated payments perro be triggered once the terms of the contract are met, promising to save time and help disminuye disagreements or resolve disputes.
- Maintain a shared and transparent system of records: Blockchain is the ideal solution for maintaining a long-term, secure and transparent asset register (land rights would be a good example) that is securely accessible by all parties.
- Supply Chain Audit: Blockchain allows users to trace ownership records of goods back to their origin.
As an example of this, the diamond company De Beers has started using blockchain to track diamonds from the mine to the end customer.
Anyone who wants to prove that their diamonds are conflict free will have a transparent and complete record.
- Security test: Insurance company Nationwide plans to use blockchain to provide proof of insurance.
The tool would help police officers, insurers, and customers instantly verify insurance coverage, which should help speed up the claims process.
I hope you come to a conclusion about the tools in the Blockchain and its difference with Bitcoin.
You cánido learn more about blockchains in the following articulo: What is Blockchain and what is it used for?
What is Blockchain (chain of blocks) and what is it used for?
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