What does bitcoin and blockchain mean?

What is Bitcoin and Blockchain?

One, the difference between blockchain and bitcoin:

Blockchain is a kind of technology, based on the technology of blockchain, there can be a lot of applications

Bitcoin: it is one of the hottest and most familiar kind of application

Two, the essence of the blockchain technology in the end is what?

Blockchain is essentially a decentralized distributed ledger database, sounds very confusing? Don’t worry, it will be explained later in the most in-depth way. Anyone can verify this public ledger, but there is no single user who can exercise control over it. The participants in the blockchain system work together to keep the ledger up to date: it can only be modified according to strict rules and consensus, and there is a very subtle design behind this.

What is blockchain? What is the relationship with Bitcoin?

Blockchain, which is Blockchain in English, is a new mode of application of computer technology such as distributed data storage, peer-to-peer transmission, consensus mechanism, encryption algorithm and so on. The so-called consensus mechanism is a mathematical algorithm in the blockchain system that realizes the establishment of trust between different nodes and the acquisition of rights and interests. Blockchain is the underlying technology of Bitcoin and acts like a database ledger of all transaction records. This technology is also gradually gaining attention from the banking and finance industry for its security and convenience. It is a very important concept within the blockchain world, and the design of many models, such as the maintenance of the ledger, the issuance of currency, the design of timestamps, the maintenance of the network, and the competition between nodes, all rely on this central idea.

One of the first applications of blockchain was Bitcoin, which has been recognized as legitimate in many countries. There is no Bitcoin organization or central bank in the world to issue it, it relies on the credit is algorithms, rely on test algorithms and guarantee the circulation of a ledger and fair mechanism, develop a kind of mutual recognition and trust a mechanism, this is the principle of its confidence in the use of the principle.

Now people’s concept of blockchain is still very general, the application also can not say too wide, but the next ten years or even decades, and then bring up the blockchain, is certainly the highest-end technology impact, young and old!

What is the difference and connection between blockchain and bitcoin?

Blockchain technology is a new technology derived with the development of bitcoin economy, blockchain technology can effectively serve the bitcoin economy, they are interrelated. Bitcoin is a virtual currency, which only circulates in a specific online economic environment, blockchain technology can not only be applied to the economy, but also can now be used in all walks of life, which is the difference between them.

Blockchain technology

Since blockchain technology is still a new product, there is no precise or definite definition and concept. Simply put, blockchain technology is a mode of encrypting and managing data, which can realize a great degree of data protection. Blockchain technology is characterized by decentralization, openness, independence, security and anonymity. Its features are well adapted to today’s requirements for information protection and information disclosure in various industries. On the one hand, it guarantees the security of data and avoids the interference of data processing by factors such as human subjective emotions and system failures. On the other hand, it can maximize the ability of data individuals to decide whether or not to hide their detailed information in the group to achieve the purpose of privacy protection.

Bitcoin

Bitcoin, which we are all familiar with, is an online virtual currency. Bitcoin does not need to be issued by a specific monetary institution, it relies on algorithms and big data to circulate and manage. It enables anonymity in the process and protects the personal information of the person making the transaction.

At present, Bitcoin is still owned by a small number of people. First, the complexity of its principles is not understood by the general public. Second, the transaction process and transaction times are cumbersome, and the algorithms and code files are not accessible, understandable, or usable by everyone. Finally, in economics, scholars are polarized between those who see Bitcoin as a catalyst for economic development and those who believe that imperfections in its management will interfere with the normal social and economic order.

Contact

As mentioned earlier, blockchain technology is a product derived with the development of bitcoin economy, so they are the relationship between root and fruit. At the same time, in terms of performance characteristics, they are also greatly related. The most obvious feature of both is decentralization, there is no specific institution to manage it, everyone can manage the data. Such as a book, once upon a time by the company’s financial office unified processing, the specific accounting process and standards are controlled by the relevant people. Decentralization removes the central control link, everyone can look through the books and know the operation process, to avoid monopoly. Anonymity, security, and other characteristics that both blockchain and bitcoin have. This is their link.

Differences

While blockchain technology is derived from the bitcoin economy, it is more socially recognized than bitcoin. The two present a containment and inclusion relationship, i.e., the Bitcoin economy is contained within blockchain technology. In addition to the economic level, blockchain technology can also be used in the news media industry to deal with the online public opinion environment, as well as in government administration, science and technology innovation, resource management and other related industries. Blockchain technology can obtain such a wide range of applications, mainly because of its significant features can adapt to the actual requirements of the development of various industries in society, comply with the trend of Internet development, and get the support of the state.

At the same time, it is indisputable that blockchain technology still belongs to the state of preliminary development. Society’s understanding of it is not deep enough, and scholars are still in the stage of continuous exploration. Through the correct use, blockchain technology will bring many positive impacts to society.