Ever heard of these both terminologies? Both have been in
existence for quite a while but most of us have not bothered to find out more
about them. Worry not as I will explain in the simplest way possible.
Blockchain.
This is a technology in which uses distributed database. Data
is divided in small block which is then distributed over the network. Each
block contains a timestamp to the next block. They use peer-to-peer connections
and a time stamping server.
Blockchain is secure by design and reversing the process is impossible
same as making modification to the already distributed data/information. Unlike
the tradition methodology that used a centralized database, and modification
can be carried out or data deleted permanently from the servers, with this uses
exactly the opposite analogy.
This simulates the same technology that is used in torrents.
The files sits on the seeders machines and when a download happens the data is
pulled from these seeders.
Bitcoin.
This is a type of virtual currency. (Crypto
currency) Just like local currency it’s used to pay for goods and
services.it acts as a public ledger for all transactions. It was launched a year
later after blockchain.
This uses the blockchain peer-to –peer methodology and
transactions are carried out directly between users and getting rid of middle
men. Once a transaction is made it verified by nodes and recorded in a public
distributed ledger the blockchain.
You may wonder how this bitcons are obtained. Simple Bitcoin
mining – this is the process users offer
their computing power to verify and record bitcoin transactions into the blockchain. Successful miners are rewarded with
transaction fees and newly created bitcoins.
This bitcoins can be used
in the day to day activities like exchanging them for local currency (in whichever
part of the world you are in). Some maintain them as a savings which they
intend to use then in the future, others use the coins to pay for commodities. There are also people who give or take loans
as bitcoins
The with growth of
bitcoins developers are now in demand to continuously develop the algorithms
and also create apps that incorporate the blockchain system.
If you are interested in
the bitcoin business first you need to grab the bitcoin wallet. Create a
bitcoin account of their website and store coins in there. Optionally if you
are on mobile go to play store/apple store and download the app.
For mobile transaction (which
I have used) it’s very simple, you receive a QR code which you friend/ customer
scans to enable connections between the two devices then you send the amount of
bitcoins you would like to transact. Please note that this transaction is irreversible.
Conclusion
This is an exciting field
that has not yet been fully tapped. Go out there do intensive research, mine as
much coins as you can. Its value to the dollar still its higher than $1000 to
1bitcoin. It works all over the globe so there is no limitations.
On the other hand be very careful
with who you are transacting with as once the coins are send it’s irreversible.
This gives cons a platform to carry out
their illegal trade under the radar.