Why does bitcoin depend on Blockchain?

Dynamism defines technology. Every year, you will find a new development transforming the world of technology, and one such disruption that has spread a wave of change was the surge of digital currency or cryptocurrency Bitcoin. It was first introduced in the year 2009.

Bitcoin is a cryptocurrency that is mined using a Proof-of-work mechanism. The miners have to solve complex arithmetical problems, and based on it; they are rewarded. There is an upper cap on the number of Bitcoins. Besides the digital financial revolution, Bitcoin also introduced the concept of Blockchain technology to the world. This distributed ledger technology, or DLT, formed the underlying framework of Bitcoin exchange. By distributed ledger, we mean that the information is spread across the network, and there is no centralized governing authority.

Bitcoin and Blockchain

The key purpose of introducing digital currency like Bitcoin was to introduce the concept of peer-to-peer exchange while keeping the identity of the user anonymous. It also eliminates the need to have third-party governance. All these features make Bitcoin exchange faster. All this is supported by Blockchain. Over a period of time, the Blockchain technology that was once the underpinning Bitcoin exchange evolved as a mainstream technology. The features that we were once associated with Bitcoin were actually the key features of Blockchain that aided Bitcoin exchange. Here are a few of them:

1. Peer-to-peer network- The first feature of Blockchain is P2P networking which aids interaction between two parties without the involvement of a third party. It aids faster transactions without any delay.

2. Transparency- Since Blockchain is a distributed ledger technology, it allows the people in the network to access the information from anywhere at any time. It results in enhancing the transparency of the system

3. Data storage- One of the defining features of Blockchain is that it time-stamps all the data. It is encrypted cryptographically. This makes the data safe and secure.

With these three basic features, Blockchain not only powered Bitcoin exchange but also triggered a wave of change in another field as well. Bitcoin got focus initially, and later it was Blockchain that overshadowed Bitcoin and became the mainstream technology of change.

The above discussion on Bitcoin and Blockchain would have highlighted how Blockchain is aiding the Bitcoin exchange. The safety, security and speed of Bitcoin exchange depend on Blockchain.

What’s next?

This wave of change is not limited to just the financial segment, but other fields like healthcare, education, media, social media, IoT and much more. And hence, there is going to be a rise in the demand for Blockchain professionals. If you, too, are willing to make a mark for yourself in this domain, a certification course in Blockchain technology will be helpful. The Blockchain Council offers the best online learning program in Blockchain. This is a blend of classroom learning and practical learning. It equips you with all the knowledge about Blockchain and its application.

The future revolves around Blockchain, and if you see yourself growing as a Blockchain developer, then this is the right time to enrol for the Blockchain certification program today.