Do you know that blockchain and bitcoin are not the same thing? If you use these terms alternately all the time, you are not alone; Many people do the same thing, probably because blockchain and bitcoin are so closely related. If you’ve ever scratched your head to see the difference between the two, this article is for you.
What is blockchain?
In short, blockchain is a computer file used to store data. Or, in more technical terms, it’s an open distributed ledger (database), which means that the data contained in the blockchain is distributed (replicated) on many computers and therefore dispersed.
This dispersion is one of the factors that make blockchain so transformative. Different from the traditional centralized database, in this kind of database, records are processed by a central administrator (for example, company or government), the whole blockchain is transparent, and the data is uniformly verified by users. However, despite this transparency, blockchain is still very secure. This is because there is no central point of hacker attack.
It sounds a bit like bitcoin. You’re right. Blockchain is a technology supporting bitcoin and is specially developed for bitcoin. Therefore, bitcoin is the first instance of blockchain. Without blockchain, there would be no bitcoin. That’s why the two names are often used interchangeably.
But that doesn’t mean blockchain and bitcoin are the same thing.
Bitcoin is a decentralized digital currency, that is, peer-to-peer electronic payment system. Users can transfer bitcoin anonymously without the interference of third parties (such as banks or governments). However, bitcoin is just an example of cryptocurrency; Other cryptocurrency networks also use blockchain technology. Therefore, although bitcoin uses blockchain technology to trade digital currency, blockchain is not just bitcoin.
Looking forward to the wider application of blockchain
Because blockchain and bitcoin are inextricably linked, it took a long time for people to realize that blockchain actually has a wider application outside the cryptocurrency network. In fact, the potential of blockchain is so great that many people (including myself) believe that blockchain technology will completely change the way we do business, just like the Internet before us.
Here are some examples of blockchain’s wider application beyond bitcoin and other cryptocurrencies:
Execute smart contracts.
Thanks to bitcoin, we already know that blockchain is very good for promoting digital transactions, but it can also be used to formalize digital relationships through smart contracts. With smart contracts, payment can be made automatically once the terms of the contract are fulfilled, which promises to save time and help reduce differences or resolve disputes.
Maintain a shared and transparent recording system. Blockchain is an ideal solution for maintaining a long-term, secure and transparent asset record (land rights will be a good example), with secure access for all parties.
Audit supply chain
Blockchain allows users to track goods ownership records all the way back to the source. As an example, De Beers, a diamond company, has begun to use blockchain to track diamonds from mines to end customers. Anyone who wants to verify that their diamonds are not in conflict will have a transparent and complete record.
Provide proof of insurance. National insurance companies are planning to use blockchain to provide proof of insurance information. The tool will help police, insurance companies and customers verify coverage immediately, which will help speed up the claims process.
Quick summary of key differences
Finally, let’s review why blockchain and bitcoin are two completely different things:
Bitcoin is an encryption currency, while blockchain is a distributed database.
Bitcoin is driven by blockchain technology, but blockchain has found many uses other than bitcoin.
Bitcoin advocates anonymity, while blockchain emphasizes transparency. In order to apply to some industries (especially banking), blockchain must meet strict “know your customer” rules.
Bitcoin transfers money between users, while blockchain can be used to transfer all kinds of things, including information or property ownership.
Can I get free cryptocurrency?
Many people think cryptocurrency is a scam. Others believe they will change the course of history. However, when the price of bitcoin reaches $20000 each, I can guarantee that as ordinary people become millionaires overnight, more people will turn green. Since then, prices have come down. Cryptocurrency markets are volatile (remember, they have always been). Wouldn’t it be great if you could get bitcoin and other cryptocurrencies for free? Does free cryptocurrency exist? Of course, you can try the following faucet websites to make it easy for you to get your favorite cryptocurrency.
Faucet.asia is a special faucet station that provides dog money. If you are only interested in dog money, you might as well try this website, faucet.asia. You can get 0.001 Doge in 30 minutes. Of course, faucet.asia also has a recommendation reward. You can get 25% of the recommendation reward by inviting your friends to register through your invitation link. If you want to get a lot of free dog money from the faucet and add some fun, faucet. Asia is definitely worth a try.
At present, xfaucets has ten kinds of cryptocurrencies, including BTC, Eth and Doge. If you are interested in other cryptocurrencies, you can also collect them synchronously, because it can be obtained every ten minutes. In addition, xfaucets has two levels of invitation rewards. The first level receives 25% of the rewards from the users who register and click on your invitation link, and the second level receives 10% of the rewards from the friends you invite and then invite them. This is different from other platforms and more profitable. If you are interested, you can click my invitation link to view it.
Allcoins.pw is one of the most valuable faucets. The list of cryptocurrencies is long, including dogcoin, bitcoin, Ethereum and Leyte. You can get Doge every 6 minutes with a single click of a button. Between rotations, you can earn more gold by playing games, setting up walls or using automatic faucets
The faucet can also provide 50% commission for your recommended income. You can share your recommended links with friends and invite them to receive rewards. In addition, if you want to make more money, you can use the tap to mine dogcoin, which will mine dogcoin on the autopilot when you perform other operations. If you want to get a lot of free dog money from the tap and add some fun, it’s definitely worth a try.
Fire faucet is another place to get some free dog money. Fire faucet also offers other cryptocurrency rewards. One of the notable things about this kind of faucet is that there is no time interval between each rotation. This means you can rotate any number of times without waiting for a second. Of course, this greatly increases your income potential
When they recommend people to use the faucet, the faucet also pays the user a 20% commission. As long as the referrals continue to make money, they are entitled to commission for life. There are several bonuses and many other ways to win more dog money. These include daily rankings, rewards, daily achievements and grades. When the minimum amount is reached, the payment will be sent directly to your personal wallet as needed. A total of 9 cryptocurrencies are supported, so you can earn any cryptocurrency you want in addition to dogecoin.
Technology Adoption Model
Before entering the blockchain strategy and investment, let’s review our understanding of technology adoption, especially the typical transformation process of other basic technologies. One of the most relevant examples is distributed computer network technology, which is reflected in the adoption of TCP / IP (Transmission Control Protocol / Internet Protocol), which lays the foundation for the development of Internet.
TCP / IP protocol was introduced in 1972 and initially gained widespread attention in a single-use case: it is the foundation of researchers’ e-mail on ARPANET, the predecessor of the U.S. Department of Defense’s commercial Internet. Before TCP / IP, telecommunication architecture was based on “circuit switching”, in which the connection between two parties or machines must be established in advance and maintained throughout the switching process. To ensure that any two nodes can communicate, telecom service providers and equipment manufacturers have invested billions of dollars in the construction of dedicated lines.
TCP / IP completely subverts this mode. The new protocol transmits information by digitizing information and decomposing it into very small packets, each containing address information. Once released into the network, the packet can reach the recipient through any route. Intelligent sending and receiving nodes at the edge of the network can decompose and reorganize packets and interpret encoded data. There is no need for dedicated private lines or massive infrastructure. TCP / IP creates an open and shared public network without any central organization or party responsible for maintenance and improvement.
Transformative applications are far away. But it makes sense now to assess their possibilities and invest in developing technologies that make them possible. They will be most powerful when combined with new business models where the logic of value creation and acquisition deviates from existing methods. Such a business model is difficult to adopt, but it can start the company’s future growth.
Consider how law firms will change to make smart contracts viable. They need to develop new expertise in software and blockchain programming. They may also have to rethink their hourly payment model and consider charging transaction fees or contract escrow fees, to name just two possible ways. Whatever their strategy, executives must make sure they understand and test the meaning of the business model before making any changes.
Transformative solutions will take off in the end, but they will also bring great value. Two areas in which they may have far-reaching implications are large-scale public identity systems for functions such as passport control, and algorithmic driven decision-making in preventing money laundering and complex financial transactions involving multiple parties. We do not expect these applications to reach widespread adoption and critical mass in the next decade or more.
Transformative applications will also generate new platform level actors who will coordinate and manage the new ecosystem. These will be the next generation of Google and Facebook. It takes patience to realize such an opportunity. Although it may be too early to start investing heavily in them, it is still worthwhile to develop the necessary basic tools and standards for them.
In addition to providing a good template for blockchain adoption, TCP / IP is likely to pave the way for blockchain adoption. TCP / IP has become ubiquitous, and blockchain applications are being built on top of digital data, communication, and computing infrastructure, which reduces experimental costs and will allow new use cases to emerge quickly.
With our framework, managers can know where to start building the organizational capabilities of the blockchain. They need to ensure that their employees understand blockchain, develop company specific applications across our identified quadrants, and invest in blockchain infrastructure.
But given the time frame, barriers to adoption and the absolute complexity involved in reaching the TCP / IP acceptance level, executives should carefully consider the risks involved in blockchain trials. Obviously, it’s a good way to start small and develop greater thinking ability. But the level of investment should depend on the background of the company and industry. Financial services companies have gone a long way in adopting blockchain. This is not the case in manufacturing. In any context, blockchain is likely to affect your business. The biggest question is when.