What is Blockchain?

A blockchain is a constantly growing ledger which keeps a permanent record of all the
transactions that have taken place in a secure, chronological, and immutable way.

Let's breakdown the definition,

⚫ Ledger: It is a file that is constantly growing.

⚫ Permanent: It means once the transaction goes inside a blockchain, you can put
up it permanently in the ledger.
⚫ Secure: Blockchain placed information in a secure way. It uses very advanced
cryptography to make sure that the information is locked inside the blockchain.
⚫ Chronological: Chronological means every transaction happens after the
previous one.
⚫ Immutable: It means as you build all the transaction onto the blockchain, this
ledger can never be changed.

A blockchain is a chain of blocks which contain information. Each block records all of the
recent transactions, and once completed goes into the blockchain as a permanent database.
Each time a block gets completed, a new block is generated.

A blockchain can be used for the secure transfer of money, property, contracts, etc. without
requiring a third-party intermediary like bank or government. Blockchain is a software protocol,
but it could not be run without the Internet

Who uses the blockchain?

Blockchain technology can be integrated into multiple areas. The primary use of blockchains is as
a distributed ledger for cryptocurrencies. It shows great promise across a wide range of business
applications like Banking, Finance, Government, Healthcare, Insurance, Media and
Entertainment, Retail, etc.
Need of Blockchain

Blockchain technology has become popular because of the following.

o Time reduction: In the financial industry, blockchain can allow the quicker settlement of
trades. It does not take a lengthy process for verification, settlement, and clearance. It is
because of a single version of agreed-upon data available between all stakeholders.
o Unchangeable transactions: Blockchain register transactions in a chronological order
which certifies the unalterability of all operations, means when a new block is added to the
chain of ledgers, it cannot be removed or modified.
o Reliability: Blockchain certifies and verifies the identities of each interested parties. This
removes double records, reducing rates and accelerates transactions.
o Security: Blockchain uses very advanced cryptography to make sure that the information
is locked inside the blockchain. It uses Distributed Ledger Technology where each party
holds a copy of the original chain, so the system remains operative, even the large number
of other nodes fall.
o Collaboration: It allows each party to transact directly with each other without requiring a
third-party intermediary.
o Decentralized: It is decentralized because there is no central authority supervising
anything. There are standards rules on how every node exchanges the blockchain
information. This method ensures that all transactions are validated, and all valid
transactions are added one by one.

History of Blockchain

The blockchain technology was described in 1991 by the research scientist Stuart Haber and W.
Scott Stornetta. They wanted to introduce a computationally practical solution for time-stamping
digital documents so that they could not be backdated or tampered. They develop a system using
the concept of cryptographically secured chain of blocks to store the time-stamped documents.
In 1992, Merkle Trees were incorporated into the design, which makes blockchain more efficient
by allowing several documents to be collected into one block. Merkle Trees are used to create a
'secured chain of blocks.' It stored a series of data records, and each data records connected to the
one before it. The newest record in this chain contains the history of the entire chain. However,
this technology went unused, and the patent lapsed in 2004.

In 2004, computer scientist and cryptographic activist Hal Finney introduced a system
called Reusable Proof Of Work(RPoW) as a prototype for digital cash. It was a significant early
step in the history of cryptocurrencies. The RPoW system worked by receiving a non-
exchangeable or a non-fungible Hashcash based proof of work token in return, created an RSA-
signed token that further could be transferred from person to person.

RPoW solved the double-spending problem by keeping the ownership of tokens registered on a
trusted server. This server was designed to allow users throughout the world to verify its
correctness and integrity in real-time.

Further, in 2008, Satoshi Nakamoto conceptualized the theory of distributed blockchains. He

improves the design in a unique way to add blocks to the initial chain without requiring them to
be signed by trusted parties. The modified trees would contain a secure history of data exchanges.
It utilizes a peer-to-peer network for timestamping and verifying each exchange. It could be
managed autonomously without requiring a central authority. These improvements were so
beneficial that makes blockchains as the backbone of cryptocurrencies. Today, the design serves
as the public ledger for all transactions in the cryptocurrency space.

The evolution of blockchains has been steady and promising. The words block and chain were
used separately in Satoshi Nakamoto's original paper but were eventually popularized as a single
word, the Blockchain, by 2016. In recent time, the file size of cryptocurrency blockchain
containing records of all transactions occurred on the network has grown from 20 GB to 100 GB.

Distributed Ledger Technology (DLT)?

Distributed Ledger Technology (DLT) is centered around an encoded and

distributed database where records regarding transactions are stored. A distributed ledger
is a database that is spread across various computers, nodes, institutions, or countries
accessible by multiple people around the globe.
Features:
Decentralized: It is a decentralized technology and every node will maintain the ledger, and
if any data changes happen, the ledger will get updated. The process of updating takes place
independently at each node. Even small updates or changes made to the ledger are reflected
and the history of that change is sent to all participants in a matter of seconds.
Immutable: Distributed ledger uses cryptography to create a secure database in which data
once stored cannot be altered or changed.
Append only: Distributed ledgers are append-only in comparison to the traditional database
where data can be altered.
Distributed: In this technology, there is no central server or authority managing the database,
which makes the technology transparent. To counter the weaknesses of having one ledger to
rule all, So that there is no one authoritative copy and have specific rules around changing
them. This would make the system much more transparent and will make it a more
decentralized authority. In this process, every node or contributor of the ledger will try to
verify the transactions with the various consensus algorithms or voting. the voting or
participation of all the nodes depends on the rules of that ledger. In the case of bitcoin, the
Proof of Work consensus mechanism is used for the participation of each node.
Shared: The distributed ledger is not associated with any single entity. It is shared among the
nodes on the network where some nodes have a full copy of the ledger while some nodes have
only the necessary information that is required to make them functional and efficient.
Smart Contracts: Distributed ledgers can be programmed to execute smart contracts, which
are self-executing contracts with the terms of the agreement between buyer and seller being
directly written into lines of code. This allows for transactions to be automated, secure, and
transparent.
Fault Tolerance: Distributed ledgers are highly fault-tolerant because of their decentralized
nature. If one node or participant fails, the data remains available on other nodes.
 Transparency: Distributed ledgers are transparent because every participant can see the
transactions that occur on the ledger. This transparency helps in creating trust among the
participants.
Efficiency: The distributed nature of ledgers makes them highly efficient. Transactions can
be processed and settled in a matter of seconds, making them much faster than traditional
methods.
Security: Distributed ledgers are highly secure because of their cryptographic nature.
transaction is recorded with a cryptographic signature that ensures that it cannot be Every
altered. This makes the technology highly secure and resistant to fraud.

How DLT Can Replace Traditional Book-Keeping Methods?

Distributed ledger technology has the potential to effectively improve these

traditional methods of bookkeeping by updating and modifying fundamental methods of
how data is collected, shared, and managed in the ledger. To understand this,
traditionally paper-based and conventional electronic ledgers were used to manage data
that had a centralized point of control. This types of system require high computing
resource and labor to maintain ledgers and also had many points of failure. Points of
failure like:
1. Mistakes made during data entry.
2. Manipulation of data could happen which increases the risk of errors.
3. Other participants contributing data to the central ledger will not able to verify
the legitimacy of data coming from other sources.
However, DLT allows real-time sharing of data with transparency which gives
trust that data in the ledger is up to date and legitimate. Also Distributed Ledger
Technology eliminates the single point of failure which prevents data in the ledger from
being manipulations and errors. In DLT, there is no need for a central authority to
validate transactions here different consensus mechanisms are used to validate
transactions which eventually makes this process very fast and real-time. Similarly, DLT
can reduce the cost of transactions because of this process.

Types of Distributed Ledger Technology

The Distributed Ledgers can be categorized into three categories:

1. Permissioned DLT: Nodes have to take permission from a central authority to access
or make any changes in the network. Mostly these types of permissions include identity
verification.
2. Permissionless DLT: There is no central authority to validate transactions, rather
existing nodes are collectively responsible for validating the transactions. Various
consensus mechanisms are used to validate transactions based on predefined algorithms.
In the case of bitcoin proof of work consensus mechanism is used.
3. Hybrid DLT: It is combined with both permissionless and permissioned DLTs and can
benefit from both of them.
Below are some of the types of DLT:
1. Blockchain: In this type of DLT, transactions are stored in the form chain of blocks
and each block produces a unique hash that can be used as proof of valid
transactions. Each node has a copy of the ledger which makes it more transparent.
2. Directed Acyclic Graphs (DAG): This uses a different data structure to organize
the data that brings more consensus. In this type of DLT, validation of transactions
mostly requires the majority of support from the nodes in the network. Every node
on the network has to provide proof of transactions on the ledger and then can
initiate transactions. In this nodes have to verify at least two of the previous
transactions on the ledger to confirm their transaction.
3. Hashgraph: In this type of DLT, records are stored in the form of a directed acyclic
graph. It uses a different consensus mechanism, using virtual voting as the form
consensus mechanism for gaining network consensus. Hence nodes do not have to
validate each transaction on the network.
4. Holochain: Holochain is termed as the next level of blockchain by some people
because it is much more decentralized than blockchain. It is a type of DLT that
simply proposes that each node will run on a chain of its own. Therefore nodes or
miners have the freedom to operate autonomously. It basically moves to the agent-
centric structure. Here agent means computer, node, miner,etc.
5. Tempo or Radix: Tempo uses the method of making a partition of the ledger this is
termed sharding and then all the events that happened in the network are ordered
properly. Basically, transactions are added to the ledger on basis of the order of
events than the timestamp.

Advantages Of Distributed Ledger Technology

1. High Transparency: Distributed ledger presents a high level of transparency

because all the transaction records are visible to everyone. The addition of data
needs to be validated by nodes by using various consensus mechanisms. and if
 anyone tries to alter or change data in the ledger then it is immediately reflected
across all nodes of the network which prevents invalid transactions.
2. Decentralized: In a centralized network, there may be a single point of failure and it
can disrupt the whole network because of mistakes at the central authority level. But
in the case of distributed networks, there is no risk of a single point of failure.
because of the decentralized structure trust factor also increases in participating
nodes. This decentralized nature of validation reduces the cost of transactions
drastically.
3. Time Efficient: As this network is decentralized so there is no need for a central
authority to validate transactions every time. Hence this time for validation of each
transaction reduces drastically. In the case of DLT, transactions can be validated by
members of the network itself by using various consensus mechanisms.
4. Scalable: Distributed ledger technology is more scalable because many different
types of consensus mechanisms can be used to make it more reliant, fast, and
updated. Because these many advanced DLT technologies are introduced in the last
few years. Such as Holochain, hashgraph are considered to be advanced and more
secure versions of Blockchain DLT. Blockchain itself is advanced and secure but
DLT provides a way to more advanced technologies.

Uses of Distributed Ledger Technology

Because of all these benefits of distributed ledger technology and this technology
has the potential to revolutionize many sectors like Financial, energy, healthcare,
governance, supply chain management, real estate, cloud computing, etc.

1. Banking: In the banking sector right now transfer of money can be both expensive
and time-consuming. Also sending money overseas becomes even more complex
due to exchange rates and other hidden fees included. Here DLT can provide a
decentralized secure network that will help to reduce the time, complexity, and costs
required to transfer money. This decentralized network will eliminate the need for
third parties which makes this system more complex and time-consuming.
 2. Cyber Security: Nowadays cyber security has been emerging as a big threat to
governments, enterprises, and individual people also. So it is essential to find an
effective solution to secure our data and privacy against unauthorized access. In
DLT, all information is authorized and securely encrypted by various cryptographic
algorithms. This provides a transparent and secure environment and none of the data
can be tempered by any entity.

3. Supply chain management: Supply chain is one of the complex structures itself. In
this structure, it is hard to trace where the fault happened. So here Distributed ledger
technology comes into the picture, Using DLT, you can easily trace the supply chain
from the beginning to the end and can easily find out where a mistake or fault has
happened. All the data added to the DLT is validated and permanent and can not be
altered. This transparency of data enables us to trace from the beginning to the end
of the ledger.

4. Healthcare: Distributed Ledger eliminates central authority and ensures rapid

access to secured and untempered data. Here important medical can be stored
securely and no one can change this data, even if someone tries to change it will be
reflected everyone immediately. DLT can be used in the insurance sector to trace
false claims because of its decentralized system.

5. Governance: DLT can be used in the government system to make it transparent

among citizens. Many governments have adopted blockchain in the governance
system because of the robustness of this system. It can be used as a voting system
too. The traditional voting system has many flaws and sometimes it is found that
there are many false voting and illegal activities that happen during voting. Online
voting systems can be used to vote and with security and fake votes can be easily
checked. everyone will have their own identity. So that any person sitting anywhere
in the world can cast his vote.

Blockchain Platforms, Regulators, Application Providers

Blockchain Platforms

1. Ethereum

Introduced in 2013, Ethereum is one of the oldest and most established blockchain
platforms. It provides a truly decentralized blockchain that is comparable to the Bitcoin
blockchain network. Manders said its key strength is that it enables true decentralization
with support for smart contracts. Its key weaknesses include slow processing times and
higher transaction processing costs compared to other platforms. Besides its role as a
blockchain platform that underpins enterprise applications, it has its own cryptocurrency
called Ether.
 The Ethereum platform has seen widespread adoption by technologists who
build decentralized applications, or dApps, on the Ethereum network. For example, there
are numerous platforms and exchanges for non-fungible tokens (NFTs) -- a type of digital
asset that can be exchanged on a blockchain. It has a mature ecosystem of tools for writing
smart contracts using the Solidity programming environment, which runs on the Ethereum
Virtual Machine. However, alternative blockchain networks can process transactions much
faster at potentially lower cost than Ethereum, though many observers expect this to
change after Ethereum adopts a more efficient security mechanism.

2.IBM Blockchain
IBM is the pioneer company to use Blockchain for creating efficient and
transparent business operations. The Blockchain platform of IBM is a popular platform to
use. This platform provides a managed and full-stack Blockchain-as-a-service offering that
allows users to deploy their Blockchain components in a user-choice environment.
Users can create, use, and grow their Blockchain network by using this IBM
Blockchain platform. Since IBM is a leading cloud platform, you can also integrate and
manage any other cloud service you use, like VOIPs, cloud storage applications and more.
3.Tron
Tron is known as an operating system that is based on Blockchain. It mainly allows
users to build decentralized apps and exchange media assets. The TRX currency is being
used to obtain access to specific operating software functionalities. As a result, the token’s
primary function is to be used on the Tron platform.
Tron was created with one particular goal: to assist content producers in getting
better compensated for their labor. The platform is based on a few ideas; one of them is
that all information on the forum is open and not under the jurisdiction of central power.
Content providers can be rewarded with digital assets, like the TRX currency or other
currencies backed by TRX, in exchange for their work.

4.MultiChain
MultiChain is a version of Bitcoin that is open source. It is simple to operate and
may be used to create customized Blockchains, both private and open. It comes with a
carefully chosen mix of functionality plus enhancements aimed at enterprise and
commercial users. Compatibility for local assets and the storing of more significant
amounts of random information appear to be promising.
Consensus-based permit administration for consortial Blockchains is an alternative
but distinctive solution. The chain could be customized by amending a straightforward text
file prepared by multichain-util; this should be achieved before executing multichain for
the first moment, as parameters cannot be altered after the network has been completely
established.

5.EOS
EOS is a well-known Blockchain platform. It is used to design and develop scalable
and secure applications. It provides the user dApps’ hosting and smart contracts capability.
It also provides the decentralized storage of enterprise solutions which helps the user to
solve the scalability issues faced by Ethereum or Bitcoin.
6.Open-chain
It is an open-source Blockchain platform. It is designed to manage digital assets in a
secure, robust, and scalable manner. It uses Partitioned Consensus, and every instance of it
has a single authority for valid transactions.

This platform is designed based on client-server architecture, which makes it more

efficient and reliable. No miner involvement exists in this platform, so the open-chain
Blockchain platform gives direct, accessible, and instant transactions.

The Major Application: Currency, Identity, Chain Of Custody.

1.Chain of Custody

Chain of custody refers to the chronological documentation tracking the handling of

an item throughout its lifecycle. Maintaining an accurate and tamper-proof chain of
custody is critical in areas like evidence management, supply chain tracking, and
document control. Blockchain technology presents an opportunity to enhance security and
visibility around the chain of custody through its decentralized and immutable properties.

How Blockchain Supports Chain of Custody

On a blockchain-based system, participants in a chain of custody workflow would

each have access to add entries as transactions. This could involve scanning an item,
adding notes, or recording transfers between parties. These transactions would be
cryptographically signed by the party's private key.

Once recorded, the blockchain’s distributed ledger would provide an immutable

audit trail of all interactions with the item. Every event is timestamped and chained
together in chronological order. Past events cannot be altered without breaking the chain.

Smart contracts can add automation around custody transfers, only releasing items
if conditions are met. Parties can only interact as authorized, with permissions enforced
automatically via code.

Every network participant can view and verify the full history of an item from
inception to its current state. This provides end-to-end visibility and accountability across
a multi-party workflow.

Benefits of Chain of Custody Management

There are several advantages blockchain offers for chain of custody:

⚫ Immutable records prevent tampering, forgery, or unauthorized modifications

⚫ Cryptographic signing of transactions provides authentication and non-repudiation

 ⚫ Distributed ledger provides transparency to all permissible parties

⚫ Automated smart contracts reinforce process compliance

⚫ Real-time visibility enables rapid issue identification

⚫ Provides evidentiary support for disputes due to an immutable audit trail

This enhanced security and accountability enables greater trust in the validity of the
custody chain. All interactions are visible to those with permission to view the ledger.

Limitations and Considerations

However, there are certain limitations to consider:

⚫ Setting up blockchain infrastructure requires technical expertise

⚫ Integrating legacy systems can pose adoption challenges

⚫ Onboarding and training users adds complexity

⚫ Privacy controls would need to manage access appropriately

⚫ Storage costs may be higher than centralized databases

⚫ Transaction speeds may be slower than desired for high throughput

Additionally, a blockchain itself does not automatically provide legal admissibility.

For evidentiary purposes, proper procedures would still need to be followed, with
blockchain serving as a secure supplementary record.

For certain use cases like supply chain tracking, public blockchains may not want
proprietary data visible. Private or permitted ledgers would be required.

2. Cryptocurrency

Cryptocurrency is a digital payment system that doesn't rely on banks to verify

transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and
receive payments. Instead of being physical money carried around and exchanged in the
real world, cryptocurrency payments exist purely as digital entries to an online database
describing specific transactions. When you transfer cryptocurrency funds, the transactions
are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

Cryptocurrency received its name because it uses encryption to verify transactions.

This means advanced coding is involved in storing and transmitting cryptocurrency data
between wallets and to public ledgers. The aim of encryption is to provide security and
safety.
 The first cryptocurrency was Bitcoin, which was founded in 2009 and remains the
best known today. Much of the interest in cryptocurrencies is to trade for profit, with
speculators at times driving prices skyward.

How does cryptocurrency work?

Cryptocurrencies run on a distributed public ledger called blockchain, a record of

all transactions updated and held by currency holders.

Units of cryptocurrency are created through a process called mining, which

involves using computer power to solve complicated mathematical problems that generate
coins. Users can also buy the currencies from brokers, then store and spend them using
cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible. What you own is a
key that allows you to move a record or a unit of measure from one person to another
without a trusted third party.

Although Bitcoin has been around since 2009, cryptocurrencies and applications of
blockchain technology are still emerging in financial terms, and more uses are expected in
the future. Transactions including bonds, stocks, and other financial assets could
eventually be traded using the technology.

Cryptocurrency examples

There are thousands of cryptocurrencies. Some of the best known include:

Bitcoin: Founded in 2009, Bitcoin was the first cryptocurrency and is still the most
commonly traded. The currency was developed by Satoshi Nakamoto – widely
 believed to be a pseudonym for an individual or group of people whose precise
identity remains unknown.

Ethereum: Developed in 2015, Ethereum is a blockchain platform with its own

cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency
after Bitcoin.

Litecoin: This currency is most similar to bitcoin but has moved more quickly to
develop new innovations, including faster payments and processes to allow more
transactions.

Ripple: Ripple is a distributed ledger system that was founded in 2012. Ripple can
be used to track different kinds of transactions, not just cryptocurrency. The company
behind it has worked with various banks and financial institutions.

Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish

them from the original.

What can you buy with cryptocurrency?

When it was first launched, Bitcoin was intended to be a medium for daily
transactions, making it possible to buy everything from a cup of coffee to a computer or
even big-ticket items like real estate. That hasn’t quite materialized and, while the number
of institutions accepting cryptocurrencies is growing, large transactions involving it are
rare. Even so, it is possible to buy a wide variety of products from e-commerce websites
using crypto. Here are some examples:

 Technology and e-commerce sites:

Several companies that sell tech products accept crypto on their websites, such as
newegg.com, AT&T, and Microsoft. Overstock, an e-commerce platform, was among the
first sites to accept Bitcoin. Shopify, Rakuten, and Home Depot also accept it.

 Luxury goods:

Some luxury retailers accept crypto as a form of payment. For example, online
luxury retailer Bitdials offers Rolex, Patek Philippe, and other high-end watches in return
for Bitcoin.

 Cars:

Some car dealers – from mass-market brands to high-end luxury dealers – already
accept cryptocurrency as payment.

 Insurance:

In April 2021, Swiss insurer AXA announced that it had begun accepting Bitcoin as
a mode of payment for all its lines of insurance except life insurance (due to regulatory
 issues). Premier Shield Insurance, which sells home and auto insurance policies in the US,
also accepts Bitcoin for premium payments.

If you want to spend cryptocurrency at a retailer that doesn’t accept it directly, you
can use a cryptocurrency debit card, such as BitPay in the US.

IDENTITY

“Blockchain Identity Management offers a decentralized and secure solution that puts users
back in control via a distributed trust model”
The blockchain technology benefits several industries with transparency, security
and many more features, adding value to their businesses. Thus, it is all set to transform
the current working of identity management as well, in a highly secure manner.
The existing identity management system is neither secure nor reliable. At every
point, you are asked to identify yourself through multiple government-authorized IDs like
Voter ID, Passport, Pan Card, etc.
Sharing multiple IDs leads to privacy concerns and data breaches. Therefore, the
blockchain can pave the path to self-sovereign identity through decentralized networks,
which assures privacy,trust, where identity documents are secured, where identity
documents are verified,where permissioned participants endorse identity documents
Everyone uses identity documents regularly, which are shared with third parties
without explicit consent and stored at an unknown location.
Whether a person needs to apply for a loan, open a bank account, buy a sim card, or
book a ticket, identity documents are used.
Government institutes, banks, and credit agencies are considered the weakest point
in the current identity management system as they are vulnerable to theft and hacking of
data.

Thus, the blockchain comes with the possibility of eliminating the intermediaries
while allowing citizens to manage identity independently. But before moving to
blockchain, we need to understand how identity management works and what are the
challenges in the existing process.
Bitcoin vs Cryptocurrency

Bitcoin Cryptocurrency

Cryptocurrency is a digital currency that does not

Bitcoin is a digital currency that utilizes depend on Bitcoin, It is a self-dependent currency
cryptocurrency. that does not depend on any other central
authority.

All digital currencies in the market today,

Bitcoin is the first cryptocurrency.
including Bitcoin.

Cryptocurrency has various use cases such as

The primary use of bitcoin to make payment
payment systems, smart contracts, supply chain
or store of value.
management, and more.

Cryptocurrency also uses a blockchain or other

Bitcoin uses a decentralized ledger called the
types of centralized or decentralized ledgers to
blockchain to maintain a secure and
maintain a secure and transparent record of
transparent record of transactions.
transactions.

Bitcoin has many abilities as it simplifies and It is very popular because it offers low-cost and
speeds up transactions without numerous secure transactions for exchanging goods and
government restrictions. services.

Bitcoin mainly focuses on reducing influencer Cryptocurrencies are created to exchange goods
costs and reducing transaction times but is and services in a secure environment with little or
less flexible. no intervention from a central authority.

Bitcoin likes to be anonymous. So while we Many cryptocurrencies that have been listed
can see their transactions in the ledger, they recently focus on the transparency of transactions.
are meaningless numbers without any Therefore, they can work with many other
particular order. industries.

Bitcoin uses is limited to trading by using it as Cryptocurrencies are now also being used for
a currency. It’s supply is limited to 21 million trading and it’s supply varies depending on the
coins. cryptocurrency.
Difference Between Bitcoin and Blockchain

Blockchain
In Blockkchain every block contains a cryptographic hash of the previous block, a
timestamp, and transaction information. In other words, blockchain is a distributed database
technology, which restricts bitcoin. In fact, any digital asset. It enables multiple parties to transact,
share valuable data, and pool their resources in a secure yet tamper-proof manner. Data contained
within the blockchain is distributed across many computers and is therefore decentralized. Due to
decentralized nature blockchains are incredibly secure as there is no single point of attack.

Bitcoin

The Bitcoin Network is the network of computers throughout the world that are connected
together, to actually process Bitcoin payment transactions between Bitcoin accounts. These
computers are referred to as miners and are owned by individual people and companies around the
world.
The Bitcoin Network is very secure. There is no possibility of ‘Double Spending’ and the
system has been specifically designed and coded to make creating counterfeit Bitcoin or fake
transactions impossible.
Bitcoin is one of the earliest cryptocurrencies to use blockchain technology in facilitating
peer-to-peer payments. Through a decentralized network, bitcoin offers a reasonably low
transaction fee compared to popular payment gateways.

S.No. Basis of Blockchain Bitcoin

Comparison

1. What is it? A Distributed Database A cryptocurrency

To provide a low cost, safe and To simplify and increase the speed of
2. Main Aim secure environment for peer to transactions without much of
peer transactions government restrictions.

Blockchain can easily transfer

Bitcoin is limited to trading as a
3. Trade anything from currencies to
currency.
property rights of the stock

It is more open to changes and

4. Scope hence has the backing of many The scope of bitcoin is limited.
top companies.

5. Strategy Blockchain can be adapted to Bitcoin focuses on lowering the cost

S.No. Basis of Blockchain Bitcoin
Comparison

any changes and hence it can of influencers and reducing the time
cater to different industries. of transactions but is less flexible.

As blockchain works with Bitcoin likes to be anonymous and

various businesses, it should hence even though we can see the
6. Status have compliance with KYC and transactions in the ledger, they are
other norms. Hence blockchain numbers that are not in a particular
is transparent. sequence.