The relationship between blockchain, Bitcoin, and Web3 is ⁉️
🔵 Blockchain
It is a type of distributed ledger technology with characteristics of decentralization, immutability, and transparency. It ensures consensus among all nodes in the network for data addition through consensus mechanisms.
✔️ Role: Blockchain is the underlying technology that provides a secure, transparent, and decentralized infrastructure that can be used to record transactions or other data.
✔️ Application Scenarios: Not just cryptocurrencies, but also include supply chain management, data storage, identity authentication, smart contracts, etc.
✔️ Relationship with Bitcoin: Bitcoin is the first application of blockchain technology, and blockchain is the core technology that supports the operation of Bitcoin.
🔵 Bitcoin
It is a type of digital currency aimed at achieving peer-to-peer value transfer, decentralized, and does not rely on any central authority (such as banks).
✔️ Features
Decentralization
Limited Supply
Blockchain Driven: The transaction records of Bitcoin are maintained through blockchain technology.
✔️ Relationship with Blockchain: Bitcoin is the first successful application of blockchain technology, which provides a distributed ledger for Bitcoin, recording all transactions of Bitcoin.
✔️ Relationship with Web3: Bitcoin can be seen as part of the Web3 ecosystem, but its functions are more focused on value storage and payments.
🔵 Web3
It is a new form of decentralized internet based on blockchain technology. It aims to build a new type of internet where users can directly control data, identity, and assets through blockchain, cryptocurrency, and decentralized protocols.
✔️ Features
Decentralization
User Ownership: Users control their own data and digital assets, for example, by directly managing assets through encrypted wallets.
Smart Contracts: Automated operations without intermediaries are realized through smart contracts on the blockchain.
Economic Incentives: Incentivizing user participation and contribution through token economic models.
✔️ Relationship with Blockchain: Blockchain is the technological foundation of Web3, and applications in Web3 (such as decentralized finance, NFTs) rely on the distributed ledger and smart contracts of blockchain.
✔️ Relationship with Bitcoin: Bitcoin is part of the Web3 ecosystem, but the scope of Web3 is broader, while Bitcoin mainly focuses on the functionality of digital currency.
🔵 Relationship of the Three
Blockchain is a cryptographic technology, Bitcoin is a derivative asset of blockchain, and Web3 is the commercial form of blockchain.
✅ Analogy:
Blockchain is 'electricity', providing the fundamental energy;
Bitcoin is the 'light bulb', the first successful application of electricity;
Web3 is the 'smart grid', a more complex and broader system based on electricity.
