What is Role of Blockchain in Bitcoin?
Role & Purpose of Blockchain Technology in Bitcoin
Blockchain is a platform offered to Bitcoins and other cryptocurrencies to operate without the need of a central authority. It not only reduces risks associated but also helps in eliminating transaction and processing fees. Bitcoins use blockchain as their digital or virtual transactional ledger.
In the terms of a layman, blockchain works as a database for all Bitcoin transactions. It stores the transactions and related data in a way that nobody can modify, hack, or compromise.
The features of Bitcoin that we explored above are the result of using Blockchain technology in Bitcoin.
Without Blockchain technology, you can’t be sure about the security of Bitcoin transactions. It is because this technology is highly complicated compared to traditional databases used.
Moreover, the traditional databases have a central authority from where the risks of modifications and compromises are always there.
In contrast, Blockchain doesn’t require any central authority, which reduces all sorts of security and privacy risks.
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Bitcoins use a token as their digital or virtual transactional ledger.
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