Bitcoin : Block Chain : Explained

Bitcoin is a cryptocurrency and a worldwide payment system. It is first decentralized digital currency, as the system works without a central bank or a single administrator. The network is peer-to-peer and transactions take place between users directly. Without intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distribution ledger called Blockchain. Bitcoin was invented by a person or group of people named Satoshi Nakamoto and released as open-source software in 2009. (Sounds large in definition right, let's deluge...... into the topic)
Bitcoins are created as a reward for the process known as mining. They can be exchanged for any other currencies. Similarly, there are many types of cryptocurrencies in the market some of them are Etherium, Ripple, Littlecoin, Litecoin, Namecoin, Swiftcoin, Emercoin, Omni and many more... But there are a few types of currencies that have become famous in the market and have become trusted ones in the market so is the reason for the dominance of the famous cryptocurrencies like Bitcoin.

Bitcoin  :   Blockchain (Difference)

Simply Bitcoin is the reward given to a minor for finding the smallest path and created a block to get the transactions done at a faster pace so that he will be rewarded for a few transactions done in that block.
The Blockchain is the technology used which is the one which decides the one who has to be paid or rewarded in the process of transaction between any two in the network.

(Technically) A blockchain is a continuously growing list of records, called blocks which are linked and secured using cryptography. Each block typically contains hash pointer as a link to a previous block, a timestamp and transaction data.

Combining Bitcoin and Blockchain.....

By design blockchain is immutable, in the sense it is inherently resistant to modification of the data. It is "an open, distributed ledger between any two parties efficiently and in a verifiable and permanent way".

Which is first Bitcoin or Blockchain?

Obviously, blockchain is the first one. Bitcoin is a type of blockchain originated using then existing blockchain technology in 2009 by Satoshi Nakamoto. At that time majority of the blockchains are used for medical purposes, Identity management, Transaction processing and many more.
But now the world best university, Massachusetts Institute of Technology uses blockchain technology to keep the certification records of its students.

As there are many types of cryptocurrencies obviously there should be many types of Blockchain technologies, there comes the difference between types of these technologies they are:

1. Permissioned (Public) Blockchain: They are public and are generally used by the government for internal purposes. Blockchains like Ripple come under this category.

2. Permissionless Blockchain(Private):Bitcoin type of Blockchains come under this category and they are not in public and have the same or somewhat higher level of security and can have higher demands because of the higher utilization of the technology.



So we can say this is also a technological breakthrough in the world of payments and transactions. This could give you a clear-cut view of the differences and individual definitions of Cryptocurrencies and Blockchain.

As this technology is not an easy going one this could not be covered in a single blog or two so my next blog on these technologies would be covering in-depth details on the processing techniques and methods used in detail this would cover many things like how to earn and where to store and how to spend..... stay awaited.

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