Blockchain is known as the technology that allows the existence of cryptocurrency. Bitcoin is the name of the best-known cryptocurrency. Bitcoin is a type of unregulated digital currency that was created by Satoshi Nakamoto in the year 2008.
Taking a Glimpse of Bitcoin
It is a cryptocurrency or a digital currency. Bitcoins are completely virtual coins to purchase goods as well as services online. Bitcoins are traded from one personal wallet to another. Here, wallet is known as a small personal database that you simply store on your computer drive, smartphone or tablet.
Before moving ahead it is crucial to grab understanding of Blockchain technology.
A Brief Insight into Blockchain Technology
The blockchain is a decentralized ledger of all transactions across a peer-to-peer network. With this technology, participants are able to confirm transactions without a need for a central learning authority. Some potential applications include settling trades, fund transfers and many more.
Relationship between Blockchain and Bitcoin
The relationship between them is of huge significance. The technology used for verifying and recording transactions that are at the heart of Bitcoin. Without blockchain, bitcoin would not be valuable and the major reason behind this is that there would be no secure method of transacting in it. While bitcoin is the digital asset, blockchain is the technology that bitcoin is built on. Thus, there is nothing wrong in saying that bitcoin is dependent on blockchain technology. It is believed that without this technology, bitcoin would not be valuable as there would be no secure method of transacting in it.
Most importantly, blockchain provides a verifiable database making sure that all purported transfers are actually transfers. Hence, you are completely protected from double spending.
Why is Bitcoin Gaining Huge Momentum?
After making the confirmation of payment, a transaction can’t be reversed by anyone. In simple words, if you send money, you send it. This is known as the only payment method that is completely irreversible.
No Third-Party Interruptions
Banks, governments and several other financial intermediaries cannot interrupt user transactions or have no way to place freezes on Bitcoin accounts. The system is completely peer-to-peer. Hence, users experience a greater degree of freedom in comparison to national currencies.
Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. There is no exaggeration in saying that strong cryptography and the magic of big numbers makes it completely impossible to break the scheme.
Low Transaction Fees
Bitcoin transactions have no intermediary institutions or government involvement; hence the cost of transacting is very low. Any transfer in Bitcoin happens very fast.
All the above-mentioned reasons definitely compel you to use Bitcoin without any worry.