This infographic and article were originally posted on Bitcoinfy.net.
HOW IS BLOCKCHAIN TECHNOLOGY RELATED TO BITCOIN?
Bitcoin is the first cryptocurrency invented in the year 2008 and published as an open source in 2009 using an alias Satoshi, but the identity behind the mask of satoshi is still mysterious and no one were able to find the actual group or person behind the invention of bitcoin. It’s the first ever electronic cash system following peer-to-peer networking.
All the transactions of bitcoin and cryptocurrency are recorded in the blockchain, where for every new transaction a new block is added to the blockchain and blockchain has all the information regarding the users transactions and addresses from the genesis block to the recently used or closed blocks. The blocks of the blockchain uniquely represents each user and the address generated during the time of transaction is unique every time which helps in maintaining user anonymity.
There are three types of blockchains namely public, private and consortium blockchain and are used according to the access conditions of the users.
All the transactions are stored safely in the blockchain using cryptography encryption. Once after storing the information or transaction in the blockchain it can’t be altered, blockchain ledgers can also be managed autonomously to exchange information between different users or parties.