Since the concepts of Blockchain and Bitcoin are intertwined, these two concepts are considered the same. Many people think of Bitcoin as a virtual money or trading system. But this is not enough for Bitcoin. It has meanings far beyond. Bitcoin is the best known application of Blockchain technology. Users of this system can transfer to each other without an intermediary. These transfers are registered in a decentralized distributed system. This system is called Blockchain. Operations performed through miners must be verified by the system. This situation brings a limit to the transactions to be made.
Nowadays, trade or money transfer is very easy. Transactions without using Blockchain technology are recorded with an accounting system. This information is usually stored in a closed form. Therefore a reliable tool is used. Bitcoin has emerged as a secure system without agents. The Bitcoin design allows for mass record keeping by a computer network over the Internet. This register is not connected to the center or closed. On the contrary, it has a public structure. This system is called Blockchain. This chain contains codes. The contents of these codes and how many are unknown. In this system, the process of managing money, ie the transactions made by banks, is done by Blockchain. Blockchain has a database that records information such as date, user information, transaction amounts. All data is saved by the computer. Each computer has one copy. Everyone can easily access all the information. The main principle of the system is to see the transaction movements by everyone. Transparency and security are provided because data is stored. It is impossible for a single person to change or destroy information.
Blockchain derives its strength from the fact that the data is recording. Each user can make changes to the copy of it information, but a change to the Blockchain network is not added to the system until all other computers have approved it. All data, including the first transaction with Bitcoin, can be reviewed until the final transaction.
Each process records a block until its capacity is full. Then the block is sent to the network to be added to the chain. This is where the mining system comes into play. Miners find the blocks that they think are right and add them to the main chain. These algorithms require significant computing power. It is called mining to try to solve these algorithms. Miners tries to get his prize by adding the next block of the main chain. The prize is Bitcoin. The person who solves the algorithm sends the algorithm it finds to the other miners. Other miners will check. Once the algorithm is confirmed to be correct, the block is added to the main chain. It is impossible to change or delete any block from the main chain.
As a result, although Blockchain has emerged as a means of payment, it is now used in many areas with smart contracts.