Are blockchain and cryptocurrency the same? – News Couple
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Are blockchain and cryptocurrency the same?


In 1983, American cryptographer David Chum created an anonymous cryptocurrency called ecash. Later, in 1995, he implemented it through Digicash, an early form of encrypted electronic payments that required software used to pull notes from the bank and assign specific encrypted keys before sending them to the recipient. This allowed the digital currency to be tracked by the issuing bank, government, or any third party.
In 1998, Wei Dai published a description of “b-money,” which was described as an anonymous distributed electronic cash system. Shortly thereafter, Nick Szabo described the gold nugget. The year was 2009 when the first decentralized cryptocurrency, Bitcoin, was created by developer with the pseudonym Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its Proof of Work scheme.

A cryptocurrency or cryptocurrency is a set of binary data designed to function as a medium of exchange in which records of ownership of individual coins are stored in a ledger which is a computerized database that uses strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of currency ownership .

According to Jan Lansky, a cryptocurrency is a system that satisfies six conditions:

  • The system does not require a central authority. Their status is maintained by distributed consensus.
  • The system maintains an overview of the cryptocurrency units and their ownership.
  • The system determines whether new units of cryptocurrency can be created. If new cryptocurrency units can be created, the system defines the conditions of their origin and how the ownership of these new units is determined.
  • Ownership of cryptocurrency units can be verified exclusively.
  • The system allows for transactions in which the ownership of cryptographic units is changed. A transaction statement can only be issued by an entity that proves the current ownership of these units.
  • If two different instructions are entered to change the ownership of the same ciphers simultaneously, the system will execute at most one of them.

A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree).
The timestamp proves that the transaction data was present when the block was published in order to access its hash. Since each block contains information about the previous block, it forms a chain, with each additional block reinforcing the blocks before it.
Therefore, the blockchain resists modifying its data because once it is registered, the data in any block cannot be changed retroactively without changing all subsequent blocks.
The blockchain was popularized by a person (or group of people) using the name Satoshi Nakamoto in 2008 to serve as the general ledger of transactions for the cryptocurrency bitcoin, based on the work of Stuart Haber, W. Scott Stornetta, and Dave Bayer.
The identity of Satoshi Nakamoto is still unknown. The invention of the Bitcoin blockchain made it the first digital currency to solve the double-spending problem without the need for a trusted authority or central server.

The difference between Blockchain and Cryptocurrency?

Blockchains can enable decentralized platforms that require cryptocurrency. The blockchain is the technology that acts as a distributed ledger and allows the network to maintain consensus. Distributed consensus enables the network to keep track of transactions, and enables the transfer of value and information.

Cryptocurrencies are the tokens used within these networks to send value and pay for these transactions, or to provide network incentives. Moreover, you can see it as a tool on the blockchain, in some cases acting as a resource or utility, or even to digitize ownership of an asset.

Finally

No, they are not the same. Blockchain is the technology that allows cryptocurrency to operate. It is a digital and decentralized ledger of transactions used in cryptocurrencies and other assets/functions. It is important to separate the technology behind cryptocurrencies from the actual cryptocurrencies.

Keep reading—>

Blockchain in Healthcare and FinTech: Will there be an impact?

Introduction to Bitcoin and Cryptocurrency Mining Pools



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