What is Blockchain?
Blockchain is a digital distributed ledger. It keeps the record of every transaction in chronological order. Furthermore, blockchain offers immutable blocks thus making itself tamper-proof.
Why do we need blockchain? Due to the rising demand for trust and security in our society, blockchain will change the way how we buy the groceries, purchase the stocks, transfer the money, pay our bills and beyond.
Remember when you are transferring money online to your friend? The internet protocol becomes the medium and facilitate this transfer in timely fashion. The same concept can apply to blockchain-powered transactions. Blockchain becomes the trusted medium of those types of transactions. Additionally, the native cryptography in blockchain can also improve the transaction security.
Among a variety of benefits blockchain offers, here are a few highlights: wider decentralization, greater transparency, security enhancement, better traceability, and lower operational cost.
Cryptocurrency and Blockchain
Blockchain is a type of technology and architecture for data storage, and Bitcoin is a cryptocurrency that uses blockchain technology.The transactions on Bitcoin are stored on a distributed and public ledger called the blockchain.
Blockchain is the platform which brings cryptocurrencies into play. The blockchain is the technology that serves as the distributed ledger that forms the network. This network creates the means for transacting, and enables transferring of value and information. Cryptocurrencies are just one of the many blockchain applications.
Besides cryptocurrencies, there are many more examples of public ledger applications. IBM has developed a blockchain platform called Hyperledger. Walmart has adopted blockchain-powered supply chain technology. Starbucks CEO, Howard Schultz said that he wants to use blockchain to “expand digital customer relationships”.