Blockchain and Cryptocurrencies might sound similar, but they’re not. While Blockchain is a whole set of frameworks used for making bitcoin-based transactions, bitcoins are a form of digital money used in crypto trading.
However, they’re connected with one another on multiple grounds. Let’s analyze the relation between Blockchain and Cryptocurrencies altogether,
Both are dependent on one another
Blockchains and crypto currencies are not optional at all. They don’t have any replacement of them. That’s because the Blockchain technology was introduced by Mr. Satoshi Nakamoto to make online transfers secure with a digital form of currency that nobody witnessed before. That’s Bitcoin. Later various other forms of crypto currencies were made, but BTC is still known for the first form of digital crypto currency to the world. The crypto currencies usually work in a secured chain of network from where it’s impossible to loss or steal data. The technology uses a chain based network for connecting the blocks with one another. One such technology is impossible to run in any third party payment gateway network.
Both play a crucial role in decentralizing database
Blockchain and crypto currencies are meant for ensuring a safe and secure decentralized database. While Blockchain has impacted healthcare, politics, voting and real estate without confining to these sectors only. The crypto currencies gifted the world a reliable and trustworthy alternative to traditional currencies, largely impacting the financial, trading and online banking sectors. Their effect is highly praised and criticized in fintech and investment banking sectors.
Changed the future of finance sector
The finance sector is completely based on money transferring process from one entity to another. Crypto currencies and Blockchain network helped in removing the dependency of the people on traditional currencies involved with this particular sector. Be it about transferring an amount from one party to another, bitcoins replaced traditional currencies after 2009. The transaction occurs within a decentralized ledger distribution system that encrypts the data in stored blocks. Tampering the financial data related to one such transaction is out of question. That’s because, each blocks are encrypted. On trying to hack any of those blocks will change the encrypted block linked next to it, instantly changing the the whole pattern of block connected with a chain.
That effected the financial sectors to reduce the threat of Cybertheft. The option was quite effective for you to seek the right one in the long run.
Enhanced the EHR and PDM in Healthcare
Data loss leading to inefficient Electronic Health Records affected the Patient Data in medical and healthcare sector heavily. With the introduction of AI driven Big Data Analysis integrating with Blockchain took a giant leap in Patient Data Management. It became less insecure for the medical clinics and the doctors to share the patient’s medical records by avoiding the chances of data loss. Ordinary cloud computing server related failure often ends up with confidential data loss.
With the Blockchains’s decentralized ledger distribution network it’s easy to share electronic medical records between two different entities. The technology does not work with an integrated network between API and server, rather runs in a secured peer to peer network with zero dependence of third party server. Eventually one such advantage reduced the risk of data loss suitably.
Revolutionized the mode of online trade and commerce
Earlier online trade was largely dependent on traditional currencies. To buy a trading asset, traders needed to have sufficient balance in their account. The crypto trade knocked down those outdated technique and provided much easier and tradable form of digital token money for acquiring trading asset. Transferring the Bitcoins from a buyer’s account to the sellers account leveraged the traders to do all sorts of online trade.
One such scope helped the online traders to get the opportunity of using Bitcoins as the new normal security for acquiring assets and perform all those trading activities that required traditional currencies earlier.
Accepting the digital version of crypto currencies are quite normal in e-businesses nowadays. Whether it’s about paying the utility bills, restaurant bills or using a third party bitcoin processor’s help to pay for your e-retail purchase, BTC currencies can be used for meeting all those expenses.
All of these transactions and e-transfers occur in a secured frame of blockchain network, which is safe, secure and reduces every chance to compromise an ongoing transaction between the two different entities.
If you’re looking for further information on how crypto currencies and Blockchain under a whole set of different network, you might check it out here.