Blockchain and Cryptocurrency: What Are They and How Are They Related to Each Other?

Blockchain and Cryptocurrency

Ever since the existence of Bitcoin, the financial industry has experienced a shift which has seen a progressive medium in which transaction processing is defined. Two major players in this shift are blockchain and cryptocurrency.

It is practically impossible to separate blockchain from cryptocurrency as they work together to provide a secure and decentralized experience for users. Before taking a deep dive into the functionality of these two terms, let’s take a shot at defining them.

What is Blockchain and Cryptocurrency

To simply understand what blockchain entails, it is best to see it as a digital ledger that stores information in blocks. This ledger employs an innovative method called cryptography in linking together “blocks” of information and while promoting decentralization. This way every user in the database can access the ledger, without any one taking full control. This further fosters trust as the blockchain is transparent for all to see, with no individual having primary control.

Cryptocurrency on the other hand can be best defined as a digital asset like money which can be used as a medium of exchange between two parties. Only this time, it is created and stored in wallets backed by the blockchain. To limit the supply of this digital currency, encryption methods are employed, which in turn potentially defines the value.

Here are few things that makes cryptocurrency different from fiat money:

  • Fiat money is issued by the government as a legal tender, which authorizes it as a medium of exchange. Cryptocurrency on the other hand is decentralized, meaning its value cannot be controlled by the government.
  • Fiat money can be printed in physical notes which can be exchanged. Cryptocurrency only exists digitally and is mostly stored and shared between wallets backed on the blockchain.
  • There is no limit to how much fiat money can be in supply. For Cryptocurrency, there is a limit to how much can be mined, which in turn defines the value.
  • Fiat money has to be shared between two people, with banks and financial institutions serving as a middleman. Cryptocurrency doesn’t need banks to facilitate its sharing between two parties, as it can be stored and exchanged between two digital wallets.

How Does Blockchain Work?

First, a transaction is entered. The transaction is then distributed across a network of peer-to-peer computers. Once that information is distributed across the peer-to-peer network, the computers get to work by providing solutions to equations in a bid to verify the transaction. Once the transaction has been verified, it is packed into blocks. These blocks are then chained together in a bid to create a ledger of transactions that can not be altered, yet are visible to the users in the network. At that point, the transaction is complete.

Because these transactions cannot be altered, this explains why they are irreversible after being processed. This in turn fosters some level of trust in the blockchain.

Benefits of Blockchain

Here are some of the irrefutable perks of the blockchain:

  • It is very transparent. Users on the network seem to have some level of control, in that they can follow up on whatever transactions are made on the network. This explains why transactions can be tracked.
  • Blockchain promotes anonymity. With the blockchain, users’ details are not required unlike with banks. This way, you can process transactions on the blockchain network without revealing your identity. 
  • The blockchain cannot be altered. This is one of the major reasons that makes it secure.
  • The transaction fees on the blockchain are much lower compared to banking transactions.
  • Blockchain allows the quick processing of bulky transactions. Because of the systems put in place, transactions are speedily verified regardless of the bulk. This explains why you could send the above six figures on the blockchain network and it would get to the recipient in a few minutes. This is hardly achievable with regular banking transactions.

The majority of the perks highlighted above lend credence to why crypto gambling is convenient and accessible.

Although there are few fears ascribed to the application of the blockchain. One of them is that the non-existence of regulation increases the likelihood of scams happening. While some other part of the divide raises concerns about the implementation challenges. 

However, so far, technologies built around the blockchain continue to remain better with each innovation sealing the gaps and assuaging some of the fears. 

The wave of blockchain technologies has experienced impressive success, given how even governments and solid financial institutions are applying them to improve the quality of doing business. It is undoubtedly so that blockchain and cryptocurrency are here to stay and the sky is only the beginning.

Blockchain and Crypto on 1xBit

One of the few betting platforms that upholds what the blockchain stands for is 1xBit. The platform is crypto-based, meaning that it is protected through the blockchain. The site also uses end-to-end encryption, accepts over 40 tokens, and regularly adds new ones, while promoting instant payouts and zero fees. It is for this reason that explains the success 1xBit has been able to achieve in such a short period of existence, given the brand’s forward-thinking and innovative solutions.
1xBit offers you a promo code WOGRAM23 to boost your deposit bonus up to 125% upon registration!

Register at 1xBit today and enjoy the perks of blockchain and crypto while gambling. 

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