Being the harbinger of evolution and advancements, the Technology has given rise to legions of groundbreaking discoveries that have successfully transformed the ways of living. What if there was a supremely powerful technology, which could transform the fundamental pillars of our society? A technology so powerful that it could influence our government, economy, and business, and thus, transform our conceptual understanding of trade, trust, and ownership? You will be glad to know that such technology does exist and it is widely known as cryptocurrency. However, the overview of cryptocurrency will remain partly relevant minus the references to Blockchain technology as well as Bitcoin.
In less than almost a decade or so, both Blockchain and Bitcoin have turned into the popular household names from being just a curiosity. The worldwide value of Bitcoin has been reportedly increased to $16,000, albeit, by following a barrel of ups and downs. The stupendous rise in Bitcoin has nudged all those speculations of its future value, that proclaim this digital currency will have a nontarnishable value as long as it will be considered as a reliable medium of monetary exchanges. However, a majority of people tend to assume that Bitcoin is just a digitally advanced transaction system, which aims to facilitate the transaction process. But, once you dig a tad deeper into Bitcoin and its precursor Blockchain technology, you will understand that the monetary aspects are anything but the tip of the iceberg. Money transaction is just one aspect of this groundbreaking technology.
From this aforementioned tête-à-tête, it’s must be clear now that Blockchain and Bitcoin are interconnected, and in fact, they complement each other. The following section of this blog is dedicated to unveiling the connection between the two. Keep reading if you are keen to know more in this regard –
The Correlation Between Blockchain and Bitcoin
Let’s admit the truth once – over the past few decades trades have been bombarded with legions of complexities. Everyone is trading with almost everyone the world across. The nuts and bolts of these trades should be recorded in the form of bookkeeping. These information are often isolated and closed to the common public. Owing to this reason, the importance of using middlemen or third parties comes into play. The third parties or middlemen are those reliable sources, that can facilitate the process of the transaction with a greater ease. Think of banks, governments, accountants, and even the paper money you carry in your wallet. These are considered the most trusted third parties. It brings us to the core essence of the Blockchain technology and Bitcoins. Bitcoin software is known to enable a network of computers for maintaining a collective bookkeeping through the Internet. Not only are these bookkeeping closed, but are also uncontrollable by any single party. Rather, they are absolutely public and also available at one digital ledger, which could be distributed across the different networks. These are better known as Blockchains.
In case of Blockchain, all transactions remain absolutely locked. This said, all the information about time, data, participants and the amount of every transaction remain 100% closed and secure. Now, every network is bound to keep at least 4 copies of Blockchains. As per the complicated states of the art and mathematical principals, the monetary transactions are verified by the Bitcoin minors, that can keep up with the ledger. The mathematical principals also assure that these notes will automatically agree about the current state of the ledger and each of its transactions. If someone tries to corrupt the translation, then the notes won’t arrive at contentious, and hence, will renounce to incorporate the transactions in the Blockchain. This way, everyone who is transacting money will have a shared single source of truth. This is the reason why you can actually rely on the Blockchain.
The ledger needs not care whether the Bitcoin is representing the number of Euros or Dollars or anything else of values. It is up to the users to vouch for the unit, which is being represented by the Bitcoin. A Bitcoin is divisible in 100 million units and each unit is individually programmable and identifiable. Owing to all these reasons, the Bitcoin is a way more than payments or transactions.
Since its inception, the Blockchain technology and Bitcoin have taken the entire world by storm. The Internet technology is extremely powerful, that can break the traditional status quo. Blockchain and Bitcoin have created a paradigm shift in the field of trades and transaction. Pull your socks up to make the most of these numero uno inventions. Happy reading!
A post by Tania Ghosh. 15th June, 2018.
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