What Is Bitcoin Cash?
Bitcoin.com Block Explorer: How to Use
How to Buy Bitcoin Cash (BCH) with a Credit Card
How to Get Started with Bitcoin
Calculating Bitcoin Core Mining Profitability
How to Buy Bitcoin Online
What is a Bitcoin Mining Pool?
Bitcoin Whitepaper: A Beginner’s Guide
Bitcoin Cash is Bitcoin
How to Use the Bitcoin.com Wallet
Who Developed Bitcoin?
How to Buy Bitcoin Cloud Mining Contracts
Differences Between Bitcoin Cash and Bitcoin
How is the Bitcoin Blockchain Different from Banking Ledgers?
How to Create a Shared Bitcoin Wallet
How to Import and Export Bitcoin Private Keys
What is Bitcoin?
A brief visual lesson on the shared history of Bitcoin Cash and Bitcoin Core
Merchants: Learn how to accept Bitcoin Cash in minutes
The benefits of Bitcoin
Why Bitcoin Cash is Bitcoin
Here are several reasons why Bitcoin Cash (BCH) has the best traits of money
How to stay safe and keep your Bitcoin secure in a public world
It’s true: Bitcoin saves lives by bringing economic freedom to the world
Bitcoin adoption continues as more around the world buy and use it as cash
Bitcoin Cash (BCH) outperforms all other payment methods
Bitcoin Cloud Mining, Is It Worth It and Is It Safe?
How to Access Your Bitcoin Cash (BCH)
How Bitcoin Transactions Work
Roger Ver on the Economic Code of Bitcoin
Can I Shop, Travel, or Gamble with Bitcoin?
How to Setup a Bitcoin ASIC Miner
What is Bitcoin Mining?
What is the Blockchain?
How to Avoid Bitcoin Fraud
What is Bitcoin Double Spending?
Ver on The Rubin Report: How Bitcoin Works
Bitcoin Cash Compared to Bitcoin Core: Infographic
How to Setup Bitcoin Cold Storage
Bitcoin Glossary
How to Choose the Best Bitcoin Wallet
How to Choose the Best Bitcoin Exchange
  • Home
  • Info
  • How is the Bitcoin Blockchain Different from Banking Ledgers?

How is the Bitcoin Blockchain Different from Banking Ledgers?

Read an important announcement about Bitcoin from Bitcoin.com.

Before delving into the difference between the Bitcoin blockchain and banking ledgers, let’s first understand what the blockchain is. To put it as simply as possible, the blockchain is a public immutable and decentralized global ledger powered by Bitcoin.

In the blockchain, transactions are part of blocks. Each block refers to a previous block adding to previous proofs-of-work, which forms a chain of blocks. Once a chain is formed, it confirms all previous bitcoin transactions and secures the network. This not only helps solve the double-spending problem, but it opens the doors for a myriad of powerful applications.

Banks for many years have also used ledgers to track and manage financial transactions, however, bank ledgers are historically private and closed. The general public cannot view them, doesn’t have access to them, and they are centrally managed by the financial institutions; essentially they are permissioned ledgers where banks oversee them with impunity.

The difference between the two is that the Bitcoin blockchain is completely decentralized and open source. This means that people do not have to rely on or trust the central bank to keep track of the transactions. The peer-to-peer blockchain technology can keep track of all the transactions without the fear of having them erased, lost or even seized. The blockchain is permission-less, anyone can participate around the world.

Furthermore, the blockchain, because of its open source nature, is more versatile and programmable than central banking ledgers. If programmers need new functionality on the blockchain, they can simply innovate on top of already existing software through consensus. This is difficult for central banks because of all of their regulations and central points of failure.

Want to learn more about Bitcoin and the blockchain? Head on over to our Getting Started page which has a myriad of helpful articles and information to get you going.

Bitcoin Knowledge Base

Bitcoin News