We have all seen or maybe heard the name of Cryptocurrency and might be some of us are investing also. In Crypto Currency, you see that you get one wallet where you get all the information about your Cryptocurrency and send it to others. One interesting fact about this wallet is once you forget the password of that wallet then no anyone helps to recover that. Day by day blockchain developer salary is increasing and you might know the blockchain developer roadmap to learn this technology.
So, let’s gather some knowledge where we discuss blockchain technology, what is blockchain means, and how this blockchain technology. Let me clarify first that Blockchain and Crypto Currency or Bitcoin both are different. That’s why we also learn about blockchain and cryptocurrency differences. Let’s start with the blockchain explorer.
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What is Blockchain Technology :
First, let’s understand What is Blockchain Technology. Because without that you can’t move further. We understand blockchain using one example. We all use online payment where you send the money from one bank account to another. But whenever you send the money there is one middle person which you can consider as a bank or an authorized person which can decide whether your transection which sends money to another bank account is valid or not.
But in the Blockchain, there is no middle man to verify the transaction all the information is public, and publicly It will verify that make the transaction is valid or not. So, basic blockchain technology definition is will immutable ledger that record all the transaction and tracks the activity in the network.
How Does a Blockchain Work?
Now let’s understand how blockchain is work. Blockchain is distributed network where anyone can insert the block and validate that block. You might be heard the name mining what’s the meaning of that. Basically, it will relate to creating the new block and validating the transaction. There are lots of miners who have these skills then who can create the block for that they will provide one challenge where they find the hash value with some pre-defines 0’s. They will give approximately 10 minutes to complete this task. Who solved that they can mind and instead of that they reward as bitcoin which have current 6.25 BTC charge.
They used cryptography concepts to provide security. Here you get one blockchain wallet where you can send the currency to anyone at their address.
Above you can see how a new block is generated and verify that. You can be considered the above figure as a blockchain transaction lifecycle. Where it will depend on whether the transaction is valid or not and if valid then store into the blocks otherwise reject that and the lifecycle of that transaction is over. Miners take the blockchain transaction fees to mine the block and validate the transaction.
Blockchain Transaction Process:
Let’s move further where we can see how the transaction process is going to make the validation. There are mainly two types of the process which are public and private. Here blockchain transaction blocks are inserted at the end of the chain and once it will be added it is immutable and no one can change them.
There are two techniques that are used to validate the transaction.
- Voting Based Method : This technique relies upon casting ballot instruments to conclude the block to be distributed. The agreement model isn’t computationally escalated and depends on accomplishing agreement by sending marked messages as votes. For instance, PBFT, RAFT, and so on.
- Lottery-Based Method : The agreement component relies upon the opportunity-based lottery political race model to choose the block to be distributed. For instance, Proof of Work, Proof of stake, and so on.
In the above most of the use Proof of Work and Proof of stake. And both have their own advantages and disadvantages. One of the features of blockchain technology risk management is continuously in the growing phase but still, there is no chance of risk once the transaction is valid. Let’s go through blockchain vs bitcoin technology.
Blockchain and Cryptocurrency Explained :
These are the most confusing terms and most of you are confused between these two terms. Cryptocurrency is one of the applications of Blockchain and Bitcoin is the first application of the Blockchain. So, let’s blockchain explorer bitcoin to find the difference.
You all know What is blockchain technology meaning so I don’t need to explain them. Let me give brief information about Cryptocurrency. A cryptocurrency, digital money, or crypto meaning advanced cash intended to function as a vehicle of trade through a PC network that isn’t dependent on any focal power, like an administration or bank, to maintain or keep up with it. Above you know how blockchain transactions explained and validate this is all related to validating them. There are more than 150+ cryptocurrencies available in the market. Two famous is bitcoin vs Ethereum. Which we will see the below.
Bitcoin vs Blockchain Technology :
These are the same topics which are discussed above. But it will have real-life examples of Cryptocurrency. There are lots of blockchain and cryptocurrency research paper available and you can also publish your own after get some research.
|S.No.||Basis of Comparison||Blockchain||Bitcoin|
|1.||What is it?||A Distributed Database||A cryptocurrency|
|2.||Main Aim||To provide a low-cost, safe and secure environment for peer-to-peer transactions||To simplify and increase the speed of transactions without much of government restrictions.|
|3.||Trade||Blockchain can easily transfer anything from currencies to property rights of the stock||Bitcoin is limited to trading as a currency.|
|4.||Scope||It is more open to changes and hence has the backing of many top companies.||The scope of bitcoin is limited.|
|5.||Strategy||Blockchain can be adapted to any changes and hence it can cater to different industries.||Bitcoin focuses on lowering the cost of influencers and reducing the time of transactions but is less flexible.|
|6.||Status||As blockchain works with various businesses, it should have compliance with KYC and other norms. Hence blockchain is transparent.||Bitcoin likes to be anonymous and hence even though we can see the transactions in the ledger, they are numbers that are not in a particular sequence.|
Now above difference you considered as a blockchain and cryptocurrency. Now let’s the table of bitcoin vs ethereum blockchain.
|1||Bitcoin was invented by a person or group of people with the name Satoshi Nakamoto in 2008.||Ethereum was proposed by Vitalik Buterin in 2013.|
|2||The purpose of bitcoin was to replace national currencies during the financial crisis of 2008.||The purpose of ethereum was to utilize blockchain technology for maintaining a decentralized payment network and storing computer code.|
|3||It does not have smart contracts.||Ethereum allows us to create smart contracts. Smart contracts are computer code that are stored on a blockchain and execute when the predetermined terms and conditions are met.|
|4||Smart contracts are not present in it.||Smart contracts on ethereum are written in programming languages like Solidity, Vyper etc.|
|5||Generally, bitcoin transactions are only for keeping notes.||Ethereum transaction may contain some executable code.|
|6||Bitcoin runs on SHA-256 hash algorithm.||Ethereum runs on Ethash proof-of-work algorithm.|
|7||The block time of bitcoin is 10 minutes.||The block time of ethereum is 12 to 15 seconds.|
|8||The bitcoin blockchain has a block limit of 1 MB.||The ethereum blockchain does not have a block limit.|
|9||Bitcoin is the most popular digital currency in the market till date.||Ethereum is the second-largest crypto-currency after bitcoin till date.|
So, that’s all about blockchain technology wiki. Here you find the information related to the blockchain wallet info. What is the difference between bitcoin vs crypto currency and very soon we are come up with blockchain wallet limit without verification how you can do or is this possible or not?