When it comes to Bitcoin and other cryptocurrencies, there is a new term that can be strange to many people: the blockchain!
This is a relatively new term, which came together with Bitcoin and other cryptocurrencies and has been gaining more and more attention in the financial market.
The blockchain, as well as cryptoactives, is the junction of two universes: technology and finance.
But what does blockchain mean? What is your relationship with Bitcoin and other cryptocurrencies? It’s safe? Is it important? We explain everything to you!
For those interested in investments, having knowledge about technology issues, especially when related to finance, is essential.
If the blockchain is the future, whoever arrives first enjoys its benefits better.
Want to know more about Bitcoin, cryptocurrencies, what is blockchain and how it all relates? You can start here! Here’s what we’re going to cover:
Blockchain and bitcoin: What is the relationship?
In general, what allows Bitcoin to circulate on the internet is the blockchain technology.
It is what allows the cryptocurrency financial system to be secure and transparent, enabling its popularity among investors to grow.
Nobody wants to put money into something dodgy, do they?
Therefore, within the blockchain it is possible to record financial transactions of cryptoactives.
In addition to information such as ownership registration and other occurrences, this record is immutable, which makes the transaction safer and even auditable.
The information described in the blockchain is detailed.
If you buy Bitcoin, for example, the blockchain keeps track of who you bought it, when the transaction was made, amount and all other details of the trade.
As the blockchain is formed by all computers within the network, whenever any addition of information is made in the logbook, it is only effective if everyone approves.
Within the blockchain, Bitcoin also serves as a reward for computers that manage to form a block of transactions validated according to the rules.
As a writer, Richard is an advocate of blockchain technology and cryptocurrency in general. He writes about all things from cryptography to economics, with a focus on how it applies to cryptocurrencies. He is also passionate about writing about topics such as decentralization, open-sourced software development, and copyright law.