Right now, cryptocurrency, like Bitcoin, has been a hot topic in the media and in the tech world. Here are five important things to know about this unique type of currency, particularly when it comes to Blockchain and Bitcoin.
1. What’s the Difference Between the Two? While many people believe they’re the same, Bitcoin and Blockchain are separate things. Simply put, Bitcoin is a type of cryptocurrency while Blockchain is the technology that makes producing Bitcoin possible.
2. The Value of Cryptocurrency. There are two parties of belief when it comes to what makes cryptocurrency, like Bitcoin, valuable. On one hand, some experts believe Bitcoin maintains its value thanks to its security – up to this point, the Blockchain infrastructure has never been hacked. On the other hand, some think cryptocurrency has intrinsic value because mining Bitcoins takes work. Overall, the significant effort it takes to produce one Bitcoin puts value in the process itself.
3. The Legality of Cryptocurrency. Cryptocurrency is legal. However, it has been used to conduct illegal transactions. Scientific American states that just like anything else, such as email, Facebook, or other internet technologies, Blockchains can be used for good and bad.
4. Blockchain and Bitcoin are More Secure Than Standard Currency. Cryptocurrency, like Bitcoin, is much more secure than standard currency because it is technically nothing more than software. The trustworthiness of cryptocurrency also comes directly from the “code base,” making it possible for anyone to create a cryptocoin and raise funds through its sale.
5. Where is Blockchain technology being used? Today, for example, Bitcoin is used instead of Western Union for international money transfers. Governments also use it for various purposes. For instance, Delaware and Illinois use cryptocurrency to process birth certificates, Vermont uses cryptocurrency for the purpose of verifying legal documents, and Dubai uses cryptocurrency for municipal licenses. In the tech world, the Ethereum network is a new app store specifically for software developers. Essentially, it is an app store for blockchain startups.