Blockchain is a distributed account. Simply put, it is also a decentralized ledger that can be viewed and joined by many people. For example, each block is equivalent to each knot on the rope. Every new transaction enters the blockchain, which is equivalent to something happening. In order to mark the occurrence of something, a symbolic knot will be tied and detailed information will be recorded on the specific knot.
Bitcoin uses blockchain to realize value storage and trading. In addition, the technical difficulty of the blockchain itself is not the biggest. The most difficult thing is its application scenario and the regulatory issues it will face.
There are three types of blockchain, namely public blockchain, private blockchain and joint blockchain; Another classification is that there is no authority and permission.
Therefore, cryptocurrency uses blockchain technology, but blockchain technology is not exclusive to cryptocurrency.
When the financial crisis comes, some investors choose to invest in cryptocurrency to avoid the corresponding asset risks. Thanks to the mechanism of blockchain to solve trust problems, this technology has been applied to financial management and transactions. Mainly manifested in the blockchain can track various types of transactions, and can also play a role in security traceability in various scenarios, such as copyright, trademarks, academic fraud and other issues are exposed.
In addition, blockchain technology can simplify transactions, make the whole transaction process open and transparent, track every transaction event, and ensure that both parties have a certain degree of trust.
The open source blockchain network can guarantee the trust when mining, and also has the characteristics of tamper resistance. When networked computers get the correct answer through sophisticated algorithms, "absenteeism" will be rewarded for mining, which can be used by servers all over the world, but the whole process is still very energy-consuming.
It may be that this misunderstanding has caused the public to confuse the concepts of Bitcoin and blockchain. Although more than 90% of blockchain projects have issued coins, there are very few projects that can be implemented. In addition, bitcoin's crazy mining practice largely wastes graphics cards and electricity.
Bitcoin is only the open source of blockchain technology, that is, the network developed for everyone, which is popular with the advantage of decentralization. However, as a public blockchain, Bitcoin consumes a lot of computing power because of mining, which leads to serious power consumption in many countries.
Therefore, for a new technology, it is best not to blindly trust or invest, and to recognize your real purpose, so as to look at everything objectively and be prepared.