For beginner traders, you need to understand what blockchain is and how it relates to Bitcoin. In this article, we will discuss.

Blockchain and Bitcoin are interconnected. When it comes to Bitcoin, it has to do with blockchain. Blockchain technology is indeed widely used and is developing rapidly.

Likewise with Bitcoin and altcoins that adopt Blockchain technology. From the explanation below, we must understand what blockchain is that makes Bitcoin and altcoin investments different from other investments such as stocks, gold, bonds, and others.

What is Blockchain?

Blockchain is a new technology that allows multiple users to operate the network. It does not require the confirmation of one ruling authority.

Blockchain technology is a system use to store transactions where the information structure contained in it is encrypted and not centralized. To make it easier, we think of the blockchain as a giant Google doc with one different key, without a centralized server.

This technology has a recording system for every digital data and can be transferred without having to go through a server that can be controlled by the company and is open. Cheaper costs with a high level of technology security make Blockchain much loved by the public.

Unlike traditional systems which are still vulnerable to cyber crime. However, this Blockchain system is modern which is certainly safe. Because the data stored is not only centralized by one organization but does not have central authority.

When was Blockchain Created?

Blockchain technology made its debut in 2008 introduced by Satoshi Nakamoto. The figure is anonymous or a pseudonym. Until now, his true identity is not known.

Satoshi released a paper entitled Bitcoin: Peer to Peer Electronic Money System. Then then, Blockchain became one of the biggest technological breakthroughs to date.

This Blockchain discovery is used as a ledger for every transaction made by Bitcoin. So far, the potential of Blockchain is not only used as a way to invest. But it can also be used by various sectors.

How Does Blockchain Work?

It can be said that Blockchain is a ledger of digital transactions that are duplicated and distributed throughout a network of computer systems. Each block in the chain contains a large number of transactions. Every time a new transaction is made, there will be every block chain. The transaction records will be added to the ledger of each participant. The database that will be decentralized managed by many participants is known as Distributed Ledger Technology (DLT).

This DLT, which will later record using a cryptographic signature, cannot be changed or is commonly referred to as a hash. This means that if a block in a chain is changed, it will immediately appear that the block has been tampered with. If hackers want to break the blockchain system, they have to change every block in the chain, across all distributed versions of the chain.

What is the Connection between Blockchain and Bitcoin?

Bitcoin adopts blockchain technology. In simple terms, blockchain is a network without regulatory authority. The price of Bitcoin is not regulated by its creators like Satoshi Nakamoto. Because the price of Bitcoin is only regulated by supply and demand (supply and demand).

Bitcoin is not like the price of other investment assets that are regulated by the government, such as stocks, bonds, foreign exchange and others. This is the difference between Bitcoin and other crypto assets. And this is how Bitcoin adopted blockchain technology.

Because it uses blockchain technology, Bitcoin is even more secure because it is not fixed on one authority. Although in fact, the Bitcoin market is more volatile. Because market movements occur around the world and for 24 hours.

Where to Buy Bitcoin and How to Invest?

For you new members, you can buy Bitcoin on Indodax. You can exchange it for rupiah. First, you must become an Indodax member. Please register here.

So that you continue to profit while trading Bitcoin and altcoin, you can also see other articles on Indodax.academy. Also take a peek at the videos and interesting content on Indodax’s official social media which you can get for free.