As emerging technologies, Bitcoin and blockchain are still new concepts to many people. Countries all over the world have actively adopted blockchain but major economies such as China, Russia and India have banned cryptocurrencies like Bitcoin. Below are some of the basics regarding the two technologies that you need to know.
Blockchain is a distributed ledger technology (DLT) that digitally records peer-to-peer transactions, creating a list of records or “blocks” that are linked using cryptography on a decentralized network. There is no central server for such a network and every new activity is added in data blocks. New blocks regularly contribute to the network and linked to the previous ones to form a chain of blocks, which is how blockchain gets its name.
The main benefits of blockchain are transparency, security and speed. The technology has the potential to not only improve operational efficiency, but also to drive down costs.
Without blockchain there would be no Bitcoin as blockchain is the underlying technology that powers cryptocurrencies.
Bitcoin is a cryptocurrency which allows direct transactions between two parties. It could potentially replace fiat cash and eliminate the need for banks and payment platforms, reducing costs such as agent fees and bank charges. Cryptocurrency transactions are also much faster than traditional payment methods given their peer-to-peer (P2P) configuration.
Due to the decentralized function of blockchain, many argue that cryptocurrencies cannot be regulated, thereby posing a threat to the current banking system and even economic systems worldwide.
Nevertheless, as the highest performing asset class of the last decade, people are increasingly turning to Bitcoin for investment or trading despite its high risks.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
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