Before we can understand how bitcoin and the blockchain are related, we need to be familiar with bitcoin’s fundamentals. To understand bitcoin, we must also understand the role of blockchain. When you say bitcoin is a cryptocurrency, you are correct. As a monetary unit, it’s an electronic kind of cash. It’s a lot more complicated than just buying a bunch of Bitcoins.
In 2009, Bitcoin was established as a form of virtual currency, with its promise of lower transaction fees than traditional online payment methods, Bitcoin has become a popular trend in recent years. Bitcoins are stored in a public cloud, where they are monitored by massive computing power, but they are not physically present. As a result, “bitcoin” is written in a lowercase “b” when referring to the currency’s units or amounts.
What is a Blockchain?
Data can be stored in the form of a basic computer file, decentralization indicates that data on a blockchain is shared over several computers, or an open, distributed (database), if you like to use technical jargon.
Instead, then relying on a single central administrator such as a business or government to maintain records in a traditional database, the blockchain relies on user consensus to verify data. Despite their openness, blockchains are incredibly secure due to the lack of a single point of entry for hackers.
However, it is not the same as bitcoin…
If you’ve ever wanted to transfer bitcoins without the involvement of a third party, then Bitcoin is the money for you (like a bank or government). The blockchain technology that powers Bitcoin is only one of many examples of a cryptocurrency that is based on this technology. Although the technology behind Bitcoin’s decentralized ledger is based on blockchain, the latter is more than just a cryptocurrency.
You may know this already but due to the popularity of cryptocurrency, there are many businesses and sectors that are starting to accept this virtual currency as a form of payment. A lot of people prefer to shop using these virtual currencies because they find it easier, safer, and faster. Growing markets and established firms have already started using this form of currency, for example, the online casino gambling industry, there are many virtual gaming platforms that accept bitcoin as a form of deposit option, from this, you will be to play a wide range of games and you can find bitcoin gaming platforms at thebestcasinos.co.uk.
