⚖️ Bitcoins and blockchain are two of the most commonly used terms in the world of cryptocurrencies. The two, however, have been misunderstood due to their similarity in name and purpose. In this article, we will discuss Bitcoin and blockchain technology to understand their key differences accurately.
✔️ Bitcoin is a type of cryptocurrency based on the blockchain technology. It was invented by an anonymous individual or group of individuals known as Satoshi Nakamoto in 2008, who published its white paper under a pseudonym. It is often referred to as digital cash, since it is created and transferred electronically. Bitcoins can be bought with fiat currencies like US Dollars or Euro, among others; it can also be exchanged for goods and services. The currency’s worth has fluctuated wildly over time; presently one Bitcoin is worth more than $50,000 USD.
✔️ Blockchains are distributed ledgers consisting of stored transaction records available for view across a computer network. These records are secured using cryptographic algorithms that secure the data from unauthorized access or malicious interference which helps preserve its integrity over time. A database must be constantly updated whenever new transactions occur; however, with a blockchain database there are multiple copies so that if one node fails the rest will remain functioning without interruption for users around the world to access it at any given time without delay or lag.
🔸To put this in simpler terms, think of Bitcoin as an asset while blockchain serves as an infrastructure beneath it upon which it operates. Furthermore, while Bitcoin represents a single form of currency within a given economic system, blockchain basically refers to a record-keeping system allowing all sorts of applications (not just related to money) to be virtually created within this framework including non-fungible tokens (NFTs).
🎓 A real-life example could involve tracking physical assets such as gold through supply chain management wherein RFID reader tags are attached at different points along along with the help of distributed ledger technology built upon different blockchains so that each part could be monitored and tracked in real-time for being shipped securely and safely from one location another without incurring delays due to centralised databases not being fast enough too cope up with real-time changes made during shipment duration like temperature fluctuations impacting shipping container’s internal environment etc..
💸 Additionally such use cases allow stakeholders involved at every stage on such shipments better communication channels since they have direct access towards verifiable information unlike being reliant on trusting third parties whose integrity may become questionable over time plus reducing operational costs associated by reducing any sort of human errors made due omission and commission as processes get automated thanks to reliable IT systems enabled by usage blockchains backed technologies in particular hereby serving different interests involved effectively and efficiently like never before!
