The Bitcoin system (broadly known as Bitcoin) is the network used to build the digital currency, a distributed peer-to-peer network. Unlike money in the traditional sense, Bitcoin is not a currency with physical banknotes issued by a monetary institution. To be specific, it should be a virtual concept of currency that only exists on the Internet. It is not backed by national or government credit, and it is decentralized.

Bitcoin is generated by a large amount of computation based on a specific algorithm. Bitcoin economy uses a distributed database composed of numerous nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of each link of currency circulation. In this way, the liquidity of money and the anonymity of transactions are ensured.

When Bitcoin was designed, its total quantity is limited, with a strong scarcity, that is to say, the current bitcoin mining, mining a little bit less. However, Satoshi Nakamoto has not revealed his identity, which makes the outside world feel very curious, then, he mysteriously disappeared, which makes people talk about this, some people speculate that the creator of bitcoin may not be a person, but a mysterious group, which makes bitcoin more covered with a layer of mysterious veil.

What is blockchain?

As we all know, blockchain is a kind of network technology, which is used as the underlying technology of Bitcoin. It is like a database ledger, which records all the transaction records. The transaction records here cannot be tampered with, and the cooperation and transaction between the parties on the chain can be directly connected.

In order to ensure the security of cooperation or transaction, the system will share the actions of each participant with all participants, then the whole process is suddenly open and transparent. The benefit of this distributed ledger is that buyers and sellers can directly trade with each other without any intermediary or platform. After that, everyone can add new transactions to the accepted ledger, and others will participate in verifying the transactions. Everyone has a backup on the chain, and if yours gets lost, it won't affect you. This solves the credit problem to a certain extent and enhances the sense of trust of all parties.

In this way, in the middle can save a large amount of costs and procedures, not only save money and save manpower, so it is respected by many industries. At present, blockchain has been applied in finance, payment, insurance, logistics and other fields.

What is the relationship between Bitcoin and blockchain?

Blockchain is not strictly a new technology, but it is because of the popularity of bitcoin that people have strong interest and curiosity about blockchain.

Blockchain is a decentralized distributed ledger database. It is decentralized, and every node of the data store will be synchronized to the whole ledger, and the information is transparent and difficult to tamper with. Block chain technology in essence is a kind of database technology, specifically is a kind of technical books, the books recording changes in one or more account balance and transaction, usually in a small laptop with us, to a certain extent the laundry list is written, sending a bank statement, Alipay billing records is a concept that is called the distributed books, combined with distributed three words, It becomes so high and unfathomable.

Bitcoin is a representation of blockchain, but blockchain is not the same as Bitcoin. Blockchain is the underlying technology and infrastructure of Bitcoin, and Bitcoin is one of the relatively successful applications of blockchain, but it does not mean that blockchain can only be applied to Bitcoin. In the future, there may be more successful applications than bitcoin.