Blockchain, commodities & Trading


What is blockchain and bitcoin? Are they the same thing?

What is Blockchain

By now you must have understood what the Blockchain is and learned that it is a network composed of an increasing number of NODES and MINERS, but the question that is also a doubt and that you may not have been able to clarify yet is: are Blockchain and bitcoin the same thing?

In fact, people often confuse the terminology and thus do not have a very clear concept and objective diversity of the elements considered so far.

Many people refer to bitcoin when they talk about the Blockchain, while others mention the Blockchain only when they have to talk about cryptocurrencies or digital tokens in general. These terms are actually not interchangeable, but instead refer to distinct and defined concepts that are connected in some way.

More precisely, we can say, for example, that while the Blockchain is a specific technology and used to record information, bitcoin is the best known way in which it can be used. We have seen how the Blockchain is designed as a distributed and decentralized digital ledger.

In simple terms, Blockchain is an electronic version of a ledger, responsible for recording a list of transactions within Blocks and these, as well as transactions, are public and visible, but cannot be changed. As new blocks are added to the Blockchain, a continuous record of linked blocks is created. Bitcoin, on the other hand, is a form of digital money, which is used as a medium of exchange within the network of users.

Are blockchain and bitcoin the same things ? Certainly not the same thing, while the former is a technology, bitcoin is the Internet currency.

And unlike traditional banking systems, these transactions are tracked through the public digital ledger (the Blockchain) and can occur directly between participants (peer-to-peer) without the need for intermediaries. Although bitcoin is the most well-known digital token, it is not the only one.

There are many other cryptocurrencies, each with its own particular characteristics and distinct functional mechanisms. Bitcoin does not have infinite mining, but instead has a limited supply, which means that no more Bitcoins will be generated from the system after the maximum supply, set at 21 million pieces, is reached.

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