What is the difference between Bitcoin and Blockchain?
“Bitcoin is a cryptocurrency, a form of electronic cash”.
“Simply, blockchain is a digital record of transactions”.
To keep it simple and quick. We will add one more term: cryptocurrency.
The difference is the same which is there between bank databases, money and dollar.
Cryptocurrency –> Money
Blockchain –> Bank Database
We buy and sell using Rupees. What it actually is to you is money. Each of your transaction is stored in a bank database.
How does Bitcoin Blockchain work?
The blockchain is a log of all transactions that were ever verified on the Bitcoin network.
The transactions are collected in blocks, which are found approximately every ten minutes in a random process called mining.
As transactions transfer ownership of Bitcoin balances, each of these blocks represents an update of the user’s balances on the network.
Bitcoin vs Blockchain Key Differences
What is it?
Bitcoin is a Cryptocurrency.
The blockchain is a ledger.
Blockchain deals with transferring assets and keeping records about it. An asset is anything of value.
A value that is transferred from one owner to another on a blockchain, can be represented in the form of tokens.
These tokens each got names- cryptocurrency. First and most famous of these is Bitcoin.
Bitcoin is a digital currency, like a type of cash such as your bank or say Paypal by enabling the peer to peer technology and to manage and verify transactions.
Whereas blockchain is a system whereas both the parties coordinate and cooperate to ease the processes, make it more safe and secure, and have a decentralized system.
Bitcoin is to simplify and increase the speed of transactions without much of government restrictions.
The blockchain is to provide a low cost, safe and secure environment for a peer-peer transaction.
Anonymity and Identity
Bitcoin focuses and functions on anonymity whereas blockchain focuses on identity.
Bitcoin is limited to trading as a currency.
Blockchain can easily transfer anything from currencies to the property right of stocks.
Bitcoin has a limited currency trading capability, blockchain can easily transfer anything from currencies to stocks.
The scope of bitcoin is a bit limited, whereas blockchain’s scope is tremendous, open to changes, upgraded and hence a lot of companies and industries are adopting it.
Bitcoin is a cryptocurrency and Blockchain is a ledger.
Bitcoin focuses on lowering the cost of influencers and reduces the time of transactions but is less flexible.
Blockchain can be adapted to any change and hence it can cater to different industries.
Bitcoin vs Blockchain – FINAL WORDS
- The Blockchain technology is though very flexible and advanced, with the ability to correct into any business models and providing resolutions to accessible issues.
- Bitcoin transactions are stored and transferred via a distributed ledger on a P2P network which is open, public and unidentified.
- The Blockchain applies Proof-of-Work (POW) algorithm to validate process. all user have to develop a POW.
- Blockchain technology allows finances to be transferred wherever in the world securely, inexpensively, and in a substance of minutes.
- Bitcoin hub on lowering the cost of influencers and reduces the time of transactions but is fewer flexible.
- When Bitcoin users want to convert their Bitcoin’s into fiat money, they can use cryptocurrency exchanges to deal them for fiat currency or any other Cryptocurrencies.