Difference between blockchain and bitcoin
Are you aware of the fact that blockchain and bitcoin are closely interrelated but they aren't the same thing? If you one of those who make the mistakes then from this article you will definitely learn a lot.
What do you mean by blockchain technology?
In layman's language, a blockchain is a computer file which is specifically designed to store confidential data. Whereas, in more technical terms a blockchain is a distributed ledger or a database which means that the data within the blockchain can be viewed using many computers thereby indicating that it is decentralized. The concept of blockchain is new to the world of technology but the decentralized data system makes the process unique. In the earlier days, databases used to be centralized which means that it remains under the direct control of one single entity which can be the government or a single entity. Technology has changed over the years thereby introducing decentralised databases which can be viewed with the permission of all the users. Yes, the method is translucent in nature but it is totally protected. This is because hackers do not know where to attack as it is handled by so many different users.
Decentralized and Distributed that sounds interesting
A Distant Dream for Many
If the two terms are playing in your mind then you are bound to think that it is bitcoin. Well, you're there. Blockchain was specifically designed to run bitcoin. It is an honest revelation that the two cannot operate without help from one another. Though the technical terms are interrelated they aren't the same.
Bitcoin is a digital currency which is decentralized in process using which people transfer bitcoins without any third-party intervention. Bitcoin is a simple example of cryptocurrency. Therefore, it can be said that Bitcoin makes use of the blockchain technology to transfer digital currencies but the blockchain is a much wider concept than Bitcoin.
How can the blockchain technology be useful?
As blockchain and bitcoins are so much interrelated that people took time to understand the concept of blockchain. A blockchain has a much wider application than a bitcoin and it is much more than just cryptocurrency networks. The concept and the application of blockchain are so vast that people are still taking time to understand that the world of business is soon to revolutionize just like what the internet did to the world.
Executing smart contracts
With the help of Bitcoin people came to know that Blockchain provides perfect execution to digital transactions and it also provides legal status to digital relations. Smart contracts help in the automation of transactions which is sent only after the terms of the contract has been accomplished. This saves up a lot of your precious time, thereby resolving any kind of argument.
Maintenance of a distributed and a transparent arrangement of records
Blockchain helps in the maintenance of a long-term, transparent, and a protected file of assets (record of investments can be an ideal example) which can be used and seen by all parties in a protected manner.
Analysis of supply chain
With the help of Blockchain records of goods purchased by which customer can be tracked. For example, if an e-commerce company is using a blockchain network then with the help of it the company can keep a track which goods have been sent from the warehouse to which location. Any customer can check the validity of the product sent with the help of records stored in the network.
Acts as evidence of insurance
Insurance companies are planning to try out blockchain so that they can provide information about the proof of insurance. With the help of the tools police officers, customers, and insurers can check out the insurance coverage without having to wait much.