Are blockchaining and bitcoins the same?

NO.

A bitcoin is a virtual concept which is a type of cryptocurrency that can be stored on a person’s local hardware, also known as cold storages.

So what is a blockchain?

Every monetary transaction goes through a central authority like a government or a bank. While transferring money, the final payment may get delayed. But cryptocurrencies ensure instant fund transfer because there is no involvement of a third-party entity in the process.

How are these transactions accounted for?

Cryptocurrencies like Bitcoin use a technology called blockchaining to ensure a fool-proof record of all the transactions happening across the globe. A blockchain is a decentralised and digital public ledger of all transactions in a peer-to-peer network.This public ledger is not vulnerable as it is not stored at a central location.

Before looking into how blockchain works, let us understand what a block is.

A block is a file that contains a series of transactions that were carried out in a time period. Each block contains a link to the previous block and hence maintains the sequence of transactions.

Let us see how a blockchain works.

Why is blockchaining in the current trend?

Since a blockchain is a public ledger that can be seen by everyone using it, there is almost negligible chances for illegal and fraudulent transactions. The concept can not only be used for financial requirements, but anywhere.

How is blockchaining useful?

Some of the applications of blockchaining apart from cryptocurrencies are in:

  1. Stock markets
  2. Financial sector
  3. Voting
  4. Supply chain management
  5. Self-driven cars
  6. Stock markets
  7. Financial sector
  8. Voting
  9. Supply chain management
  10. Self-driven cars