Bitcoin is a network that runs on a protocol known as blockchain. In a 2008 article by a person or group calling themselves Satoshi Nakamoto; the definition of blockchain and Bitcoin was delivered. However the two terms were synonymous for a while. The blockchain has developed into a separate concept and thousands of blockchains have been created using similar cryptographic techniques. This detail regarding Bitcoin history can confuse the naming. Blockchain sometimes refer to the original Bitcoin blockchain. But, generally, the phrase blockchain refers to blockchain technology or any other special blockchain such as powering Ethereum. The basics of blockchain technology are pretty simple. Any blockchain consists of a single chain of separate blocks of information arranged chronologically. In principle, this information can be any series of 1 and 0 (i.e. it can include emails, contracts, title deeds, marriage documents, or bond trading. ) In theory, any type of contract between two parties can be set up on a blockchain as long as both parties agree on the contract. This eliminates the need for a third party to be involved in any contract. In addition, blockchain technology opens up a world of possibilities, including inter-party financial products such as loan debts and savings and checking accounts that are unrelated to the credit hub (without requiring the presence of banks or any other brokerage companies). Although Bitcoin's current goal is to be accepted as a store of value and a payment system, it is not possible to say that Bitcoin cannot be used in the future as described above. Of course, consensus will have to be reached to add these systems to Bitcoin. The main goal of the Ethereum project is to have a platform where these "smart contracts" can be realized. As such, Ethereum aims to create the world (jurisdiction - scope of authority) for all decentralized financial products without any intermediaries (and without the fees and potential data breaches that come with them). This versatility is already attracting the attention of governments and private companies. Some analysts believe that at the end of the day, blockchain technology will be the most influential aspect of the digital currency craze. In the case of Bitcoin, the information on the blockchain is mostly transactions. Bitcoin is just composed of a list. Person A sent X bitcoin to person B (who sent Y bitcoin to person C)… By counting these transactions, everyone can know where individual users are. Another factor that should be kept in mind is that these procedures do not necessarily have to be done from person to person. Anyone can access and use the Bitcoin network. When using the Bitcoin system; You are not expected to provide information about your ethnic origin, gender, religion, race or political orientation. This feature creates ample possibilities for the Internet of Things. In the future, we can see systems where driverless taxis or uber cars have their own blockchain wallets. In case digital money is sent to the car from the passenger; the vehicle can be programmed not to move until money is received. The vehicle evaluates when it needs fuel and uses its wallet to easily refuel. Another name for a blockchain is the "distributed ledger" that highlights the fundamental difference between this technology and a well-processed text generator document. Bitcoin's blockchain is distributed which means that it is public. Anyone can download it completely or go to any number of parser sites. This means that the recording is open to the public, but also complex measures are taken to update the blockchain ledger. There is no central authority to monitor all bitcoin transactions. Therefore, participants do this by creating and validating "blocks" of transaction data. See the "Mining" section below for more information. For example, you may see that 15N3yGu3UFHeyUNdzQ5sS3aRFRzu5Ae7EZ sent 0.01718427 bitcoins to 1JHG2qjdk5Khiq7X5xQrr1wfigepJEK3t on August 14, 2017, between 11:10 and 11:20 am. Long strings of numbers and letters are addresses, and if you are a lawman or well informed about the matter, you can probably find who is in control of them. It is a misunderstanding that Bitcoin's network is completely anonymous, but taking certain precautions makes it very difficult to relate individuals to transactions.