What is Blockchain?
There is a lot of information about blockchain and cryptocurrency. When I started, I had a hard time finding a "simple" or basic explanation about blockchain. I collected some information that I hope helps you understand the concept and process. With this, you can answer the question you maybe often get, what is bitcoin or what does your investment do.
What is Blockchain?
As the name suggests, blockchain is nothing but a growing chain of blocks (records) that holds information about transactions taking place over the web. Every block (a record) contains data in the form of coding that is organized in a chronological manner. ted to take shape.
A blockchain is essentially a digital ledger (database) of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
The main purpose of the blockchain is to allow fast, secure, and transparent peer-to-peer transactions. It is a trusted, decentralized network that allows for the transfer of digital values such as currency and data.
Difference between blockchain and Bitcoin:
Blockchain is the technology that underpins the cryptocurrency Bitcoin, but Bitcoin is not the only version of a blockchain distributed ledger system in the market. There are several other cryptocurrencies with their own blockchain and distributed ledger architectures
How do transactions work:
Difference between coins and tokens.
“Altcoin” is a combination of two words: “alt” and “coin”; alt signifying ‘alternative’ and coin signifying (in essence) ‘cryptocurrency.’ Altcoin simply refers to those coins that are an alternative to bitcoin.
Coins refer to any cryptocurrency that has a standalone, independent blockchain — like Bitcoin, Ethereum, Cardano, etc. These cryptocurrencies are bootstrapped from scratch, and the broader network is designed explicitly to achieve a certain goal.
A token is a type of cryptocurrency which is usually issued on top of another existing blockchain.
Basically, a token is a secondary asset for a particular application on a blockchain ecosystem that also has a market value but isn’t a currency as straightforward as Bitcoin or Litecoin.
A smart contract is a computer code that can be built into the blockchain to facilitate, verify, or negotiate a contract agreement. Smart contracts operate under a set of conditions that users agree to. When those conditions are met, the terms of the agreement are automatically carried out.
Use cases for blockchain:
Blockchain VS banks:
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