Many people have started making lots of money via cryptocurrencies these days. But, there is a debate about the use of cryptos for making money. This debate is based on two essential terms, “Bitcoin” and “Blockchain”. Despite the constant debates and people making lots of money out of cryptocurrencies, they are still confused between Bitcoin and Blockchain.
To be brief, we can say that Blockchain is a technology whereas Bitcoin is known to be the first successful product of this technology. This post will differentiate between Bitcoin and Blockchain and also explain their uses.
What Is the Difference Between Bitcoin and Blockchain?
To find out the differences between Bitcoin and Blockchain, we should first understand each of these terms individually:
What is Bitcoin?
Introduced in 2009, Bitcoin has become the largest crypto by market capitalization around the world. Bitcoin was the first cryptocurrency that used Blockchain technology to facilitate peer-to-peer payment. With a decentralized network, Bitcoin has a lower transaction fee in contrast to other famous payment gateways. Unlike any government-issued currency, Bitcoin is run by a decentralized authority. Bitcoins are not available physically, and balances are maintained on public ledgers that everybody has access to. A large amount of commutating power verifies every Bitcoin transaction. Bitcoin is created, traded, stored, and distributed using a decentralized public ledger system called a Blockchain.
A summary of the main differences between Bitcoin and Blockchain
- Bitcoin is crypto, while Blockchain is known as a distributed database.
- Bitcoin endorses anonymity, whereas Blockchain is all about transparency.
- Blockchain technology powers Bitcoin, but blockchain technology has various uses beyond Bitcoin.
- Bitcoin transfers currencies between users, whereas Blockchain helps you transfer everything like property ownership or information rights.
- Bitcoin aims to simplify and raise the speed of a transaction without government restrictions. At the same time, Blockchain offers a safe, secure, and low-cost provision for peer-to-peer payments and transactions.
- Bitcoin has a limited scope. In contrast, Blockchain is fully open to different changes and also has the support of various big companies.
What is Blockchain?
It is a digital, computerized payment gateway that enables users to keep a record of transactions continuously between two parties. Blockchain is a well-known distributed ledger technology that can be used with any cryptocurrency. It lets many parties transact, pool their resources securely, and share valuable data. Many people think that Blockchain is pretty new. But, it is not true. The advent of Blockchain technology can be traced to 1991. However, it became famous only after the introduction of cryptocurrencies.
Uses of Bitcoin and Blockchain
Uses of Bitcoin
Bitcoin is a kind of electronic money. So, you cannot stick them in your pocket. Nor can you go to the bank to withdraw them. They exist in a virtual cloud-only and can be traded as a currency. You can make payments at certain places using Bitcoins. Users of Bitcoin can receive and send Bitcoin using a computer or smartphone.
Uses of Blockchain
- Blockchain technology helps create Blockchain-based contracts. These contracts are becoming famous in sectors such as healthcare, government, and real estate industries.
- Blockchain is also used commonly in the finance industry for the time and money it saves for financial companies, big or small.
- Internet of Things is another logical Blockchain application. Blockchain-infused IOT have higher levels of security to avoid data breaches by using virtual incorruptibility and transparency.
- The government uses Blockchain technology to keep social security numbers, birth dates, birth certificates, and other vital information safe on decentralized Blockchain ledgers to decrease identity thefts.
- It also helps in transferring anything of value, ranging from cryptos to stocks to property titles.
- Logistics and supply chain management is another sector where Blockchain helps attain transparency and build an unchallengeable registry of transactions.
- Many existing issues in the media have to do with royalty payments, intellectual property piracy, and data privacy. Blockchain technology offers the industry the needed facelift with piracy, payments, and data rights.
- Another surprising use of blockchain technology is for enhancing government. Blockchain can revolutionize our elections. It can raise accountability, decrease financial burdens, and improve bureaucratic efficiency.
What Is the Scope of Bitcoin and Blockchain?
Bitcoin has a limited scope. Though a few countries have embraced Bitcoin openly, others have either restricted or banned it. But, Bitcoin is not accepted legally as an alternative for the legal tender of a country.
Blockchain has grown tremendously over the last few years and is expected to rise more. Governments are also launching various Blockchain initiatives and choosing this technology to assure their systems’ security, trust, and transparency.
From making the existence of cryptos to revolutionizing government processes and industries – Blockchain technology has made a place for itself in the world. Conversely, Bitcoin has been witnessing many ups and downs. Being the first cryptocurrency, it is one of the best-known ones. Bitcoin has been proven to be a safe haven asset as compared with Gold. You can also make huge profit from Bitcoin trading by investing through the Bitcoin Future platform. Check out Authentic Bitcoin Future Review to know more about this amazing trading platform.
Both of them are very different in terms of what they are, how and where you can use them, and more. However, both of them have in common that they aim to make the lives of people simpler.