The earth as we see of today was way different several years ago. Also, it will be way different several years into the future. A full mechanized and digitalized world it would be.
- Bitcoin is a digital currency, while blockchain is the decentralized ledger technology underpinning cryptocurrencies like Bitcoin.
- Blockchain technology allows secure, transparent, and tamper-proof record-keeping, while Bitcoin represents a specific blockchain application in the financial sector.
- Blockchain has potential applications beyond cryptocurrencies, including supply chain management, voting systems, and digital identity management.
Bitcoin vs Blockchain
The difference between bitcoin and blockchain is that bitcoin is considered as a digital currency, but, blockchain, on the other hand, is the digital record for maintaining crypto transactions. Bitcoin can be exchanged from holder to holder without any formalities. But, blockchain is like a calculation copy or our diary in which we keep the records of our expenditure.
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If one enters into the sector of bitcoins, the essential thing he needs to know is that it’s a cryptocurrency. In real each bitcoin is a digital currency or digital wallet which you can carry your favorite electronic device.
On the opposite side, blockchain represents a record similar to the logbook. In short, it is a digital platform that keeps a record of every trade that ever took place in the cryptocurrency network.
|Parameters of Comparison||Bitcoin||Blockchain|
|Definition||It is a type of cryptocurrency that operates under the supervision of blockchain.||It’s a networking house that keeps a record of all cryptocurrencies.|
|Method of Functioning||Bitcoin transactions do not involve any third-party authority, as its sole trading depends on the owner.||Blockchain works as a logbook for all the transactions of bitcoins.|
|Future uses||Bitcoin is a fast and intangible way of transaction. Also the future of money exchange.||Blockchain has more room to turn into a global platform for many businesses.|
|Capabilities||Bitcoin, on the other hand, is only confined to trading markets. A task that involves selling and buying or for business transactions.||In addition to keeping records of the cryptocurrencies, blockchain also keeps records of other businesses and transactions.|
|Security||Whereas, the frauds and fake exchange over the internet in the name of bitcoins are not new to our eyes and ears.||When it comes to data of the transactions, it is sort of safeguarded by the strong encryption of the blockchain network.|
What is Bitcoin?
In simple terms, as stated earlier, bitcoin can be understood as a digital form of currency. Unlike material cash, it does not have any upper hand in control.
The currency first started operating in 2009. With such fame, due to its increased illegal use, it has been restricted in some parts of the world.
Now the exciting thing about these bitcoins is their price. When we lay eyes on the records of its pricing, after the two years of its launch, it held the value of US$0.30 to US$30. But it fell drastically to US$2 later on.
The part of bitcoins being illegally used can’t be ignored. Although the blockchain is strong to invade any malware, hackers somewhere get hold of the loopholes.
What is Blockchain?
Blockchain, also a form of digital being, can be described as a storehouse of data. Data regarding cryptocurrencies, of course. Due to the variability of the forms in which data can be stored, blockchain also houses the data in different forms.
There’s an exciting way to how blockchain houses the data. Simply by the name, one can understand that blockchain stores its data in the form of chains of blocks. This network collects the data and shales it into a block.
We understand that in a blockchain, new data is always added to the previous block, which results in secured data storage of every block. So likewise, every block has its different identification based on the time, date, and other details.
Thus, for any hacker to tamper with anyone’s block, it would require altering all the blocks at one go. However, a vast amount of data and network to collectively tamper with would be a sweat-drenching task for any intruder.
Main Differences Between Bitcoin and Blockchain
- Bitcoin is the future face of currency. It can only be used in businesses that involve money. On the other hand, blockchain can be used to share additional data also.
- The amount of corruption behind the mask of bitcoin is not new to people. But, when it comes to security, blockchain is a few steps ahead with its secured chain of blocks to keep the data safe from any hackers to lay a finger on.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.