Anyone even remotely conversant with current trends would have come across the words “Bitcoin” and “Blockchain” one way or another. Lots of individuals are investing and reaping huge gains from cryptocurrencies like Bitcoin. Although many people are quite familiar with Bitcoin, they don’t quite know the difference between blockchain and bitcoin. Hence, they often use the two terms interchangeably.
Although Blockchain became known to the world when Bitcoin became widely known in 2009, the two are quite different. Blockchain is a technological innovation that was first applied to Bitcoin and then subsequent cryptocurrencies.
In order to understand the difference between blockchain and bitcoin, it is important to understand what they really are
Meaning of bitcoin
Bitcoin is a digital currency and the very first cryptocurrency to come into existence. It utilizes blockchain technology through a secure, decentralized network to facilitate peer to peer transactions. Many people today are investing in Bitcoin and businesses use it for transactions because of its highly secure network.
The person who founded this digital currency is known as Satoshi Nakamoto, and not very much is known about him. He is said to have appeared in 2008, before the unveiling of bitcoin, and then he suddenly disappeared three years later.
Although it isn’t confirmed, there is a theory going around that name. The theory states that “Satoshi Nakamoto” was coined from four large tech companies in the world which include; Samsung, Toshiba, Nakamichi and Motorola.
Meaning of blockchain
Blockchain is a revolutionary technological innovation that was brought to the knowledge of individuals with the dawning of digital currencies. Although it is presumed to be used for cryptocurrencies alone, it can be applied to a wide range of fields. Blockchain is a digital payment gateway that allows for secure transactions between two parties.
To fully understand how blockchain works, you need to understand its three major components which include; blocks, nodes and miners. The blockchain technology not only secures and records transactions, it can also be used for authentication and to ensure anonymity of transactions.
Though Blockchain technology is presumed to be the most recent technological innovation, the innovation of this technology actually dates back to 1991. It was only made known to the world with the advent of cryptocurrencies.
What makes bitcoin so secure
Although Bitcoin and Blockchain technology are known to be highly secure, not very much is known as to why they are so secure. We know that Bitcoin is made secure by the Blockchain technology, however, what makes the Blockchain technology secure?
Blockchain is the backbone of cryptocurrencies, preventing damage and duplication, hence it is highly essential for it to be secure. It is made secure, majorly through cryptography and mathematical models of behavior. Blockchain technology is a wide field of study that cannot be explained in a short period of time. However, there are basic mechanisms that facilitate its high level of security.
Blockchain and Bitcoin has ushered the world into a new era of business transactions and investment opportunities. Although they are still in their infancy, they have already revolutionized the tech world as well as numerous industries. Though the technology has brought advancements, there are still many more possibilities that are yet to be explored.