When it comes to Bitcoin, people often think of it as a form of digital currency. However, what many don’t realize is that Bitcoin is actually based on a type of technology called blockchain.
In fact, blockchain is what allows Bitcoin to function as a decentralized currency. So, what exactly is blockchain?.
A blockchain is a digital ledger that records all transactions that take place within a given network. Each transaction is then verified by nodes, or computers, within the network before being added to the chain.
Once a transaction is added to the chain, it cannot be altered or removed. This makes blockchain an incredibly secure way of conducting transactions.
So, how does this relate to Bitcoin? Well, as mentioned earlier, Bitcoin is a decentralized currency. This means that there is no central authority controlling the currency. Instead, transactions are verified by nodes within the Bitcoin network.
These nodes work together to confirm each transaction before it is added to the chain. This prevents anyone from fraudulently altering or reversing transactions.
While Bitcoin and blockchain are often spoken about in the same breath, it’s important to remember that they are not the same thing. Blockchain is the underlying technology that allows Bitcoin to function as a decentralized currency.
So, while Bitcoin may be the most well-known application of blockchain technology, it is certainly not the only one.