Often, people turn to confuse blockchain and cryptocurrency as being the same. Even though the two are different innovations on their own, they both work hand in hand. It is worth noting that Blockchain can be used in other areas other than the decentralized nature it provides to cryptocurrencies.
In recent times, many institutions and governments are considering the possibility of making any good use of Blockchain technology. Businesses are now proposing the use of private blockchains to enhance work.
Blockchain has been designed to keep records of all transactions that take place across a peer to peer network. Blockchain works as an anonymous ledger. Although details of transactions are secretly kept, the ledger is made public. Thus one can view it to confirm that a transaction took place. The Blockchain technology helps to decrease cost, enhance transparency and allows efficiency.
Satoshi Nakamoto created the blockchain to serve the purpose of recording transactions made with bitcoins, hence becoming a public transaction ledger. This made Bitcoin the first cryptocurrency to make use of the blockchain in recording all transactions without the interference of an outside party or central authority.
Cryptocurrencies most of the time rely on the blockchain. To mine cryptos such as bitcoin, the blockchain is inevitable. Blockchain contains a set of blocks with each of the block containing details of transaction data or transactions made with cryptocurrencies. Each of the individual blocks is made up of puzzles that are being solved by miners to validate transactions.
After successfully solving the problem, a new block is created and published to other nodes. The miner is then rewarded for completing the task.
As said earlier, blockchain serves as a ledger for recording all transactions made with cryptocurrencies, and it may take up to 30 minutes or more for Bitcoin transaction to be recorded. When this happens, details of the transaction are all confirmed and settled within a short period across all nodes. Once a transaction has been recorded, it becomes impossible for the data to be modified.
The blockchain also ensures that cryptocurrency wallets calculate their spendable balance so that new transactions can be confirmed, and ensure that there is no multiple spending.
It is important to know that without blockchain, it will be impossible for most of the cryptocurrencies to run successfully. To attract all the benefits of securities most of the cryptocurrencies come with, you can not do without the blockchain.