No, Blockchain is not Bitcoin. Yes, Bitcoin is (based on the) blockchain.
Bitcoin has been a buzzword for some time now. But many who are still not completely familiar with crypto, still think “Bitcoin” whenever someone mentions words like web3, blockchain, or cryptocurrency around them. But why is it so?
Disclaimer: This article is not about investing, why you should or should not invest in cryptocurrencies, buying or should not buy NFTs, or anything similar. I would rather want to discuss why those not familiar with the world of cryptocurrencies always think of Bitcoin whenever they hear any buzzword from the Web3 world.
What is a blockchain?
Blockchain is a concept, build on the principle of highly secure, open-for-all storage of information. This concept is then extended to different industries to create different types of products. For ex: cryptocurrencies were created in the finance industry, NFTs were introduced in the consumer products market, etc.
An NFT is basically proof that a certain “thing” is owned by a certain entity. This proof is stored on a blockchain that is open-for-all, meaning anyone in the world can look up the blockchain and verify that Vignesh Sundaresan owns the Everydays artpiece. This piece of information is also tamper-proof, meaning that is almost impossible for someone to hack their way in and change the ownership of this art piece to someone else’s name.
For cryptocurrencies, let's take Bitcoin itself as an example. If Tom sends 0.1BTC (bitcoin coin) to Dick, then anyone in the world can look up the blockchain under Bitcoin and know that Dick has received 0.1BTC from Tom. This is because the information stored on the blockchain is open-for-all. And so is it tamper-proof; no one can change the piece of information saying that Tom had transferred 0.1BTC to Dick.
Yes, it is certainly possible for Alice to steal Dick’s crypto wallet and take ownership of the 0.1BTC in their wallet. But the piece of information on the blockchain that Tom had sent 0.1BTC to Dick cannot be changed. Even though Alice may take ownership of the bitcoins, the historical record of the transaction from Tom to Dick will always remain.
This in essence is the power of blockchain. By being highly secure and tamper-proof it paves the way for doing away with authorities and governing bodies who used to dictate ownership of assets, money, and everything else in…