Bitcoin is the digital currency that utilizes cryptocurrency and it is controlled by the decentralized authority which is not like the government-issued currencies whereas the blockchain is the type of the ledger recording all of the transactions that are taking place and helps in facilitating peer-to-peer transactions.
Bitcoin vs Blockchain Differences
Whenever we talk about bitcoin and blockchain, people generally think they are the same because bitcoin was the first-ever application of blockchain. People usually mistake bitcoin vs blockchain.
Since then blockchain has undergone huge technological changes and now blockchain is even catering to other industries as well.
- Bitcoin is a digital currency that can also be called as a top cryptocurrency. It was mainly created to speed up the cross-border transactions, to reduce the government’s control over the transaction, and to simplify the whole process without having third-party intermediaries.
- Bitcoin is not a formally accepted medium of payment but people around the world use it for various kinds of transactions. Since it is not physically present, it is very safe and secure and blockchain is the best way to do these transactions.
- The blockchain is a type of ledgerType Of LedgerLedger in Accounting, also called the Second Book of Entry, is a book that summarizes all the journal entries in the form of debits & credits to use for future reference & create financial statements. that records all the transaction and helps in peer to peer transactions. It is open, secure, and easily accessible to all.
- Blockchain thus acts as bitcoin’s ledger and takes care of all the transactions of bitcoin. Since then blockchain has grown from strength to strength and now it is catering to even small transactions across various industries.
- Blockchain has made the technology to adapt to different areas and industries such that the technology can be changed according to the high-quality standard that each company requires.
Bitcoin vs Blockchain Infographics
Here we provide you with the top 6 difference between Bitcoin vs Blockchain
Bitcoin vs Blockchain Key Differences
Here are the key difference between Bitcoin and Blockchain–
- One of the key differences between bitcoin and blockchain is the adaptability. When we look at bitcoin, we look at something that is rigid and concentrates on cross-border transactions. While blockchain first started out as a ledger of the bitcoin currency, but it began to improve and slowly started catering to other industries as well. It has made continuous improvement in technology and now blockchain is the hottest thing running in the market right now.
- Bitcoin is a cryptocurrency that is used to reduce the transaction charges and transaction time of cross-border transactions. The blockchain is a distributed ledger that enables peer-to-peer transactions in one of the safest environments. Transactions done through blockchain are made public so that it can be transparent.
- Bitcoin is a little bit closed system and it very much likes anonymity. Even when we find the transactions in the ledger, bitcoin vs blockchain are recorded in numeric codes that people can’t understand and that is why it is unable to move forward. On the other hand, blockchain has been working with various industries and hence it should comply with the rules and norms of the companies like the anti-money laundering, knowing your customer etc. So, it shows all the transactions clearly and the public has full access to the ledger thus companies trust more on the blockchain.
Bitcoin vs Blockchain Head to Head Differences Between
Now, Let’s have a look at the head to head difference between Bitcoin vs Blockchain–
|The basis for comparison between Bitcoin vs Blockchain||Bitcoin||Blockchain|
|What is it?||A crypto-currency||A ledger|
|Main Aim||To simplify and increase the speed of transactions without much of government restrictions.||To provide a low cost, safe, and secure environment for peer-to-peer transactions.|
|Trade||Bitcoin is limited to trading as a currency.||Blockchain can easily transfer anything from currencies to property rights of stocks.|
|Scope||The scope of bitcoin is limited.||The blockchain is more open to changes and hence has the backing of many top companies.|
|Strategy||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.|
|Status||Bitcoin likes to be anonymous and hence even though we can see the transactions in the ledger, they are numbers that are not in any particular sequence.||As blockchain works with various businesses, it should have compliance with KYC and other norms. Hence blockchain is very transparent.|
Bitcoin vs Blockchain – Final Thoughts
Both bitcoin and blockchain have their own strengths. Now in this digital age, it is certain that more and more people will look at how they can get the advantage of bitcoin and blockchain. With millions and millions of cross-border transactions being done every day, bitcoin and blockchain will make the lives of the people easier.
But with the improvisation of blockchain technology, it has more applications than bitcoin. Bitcoin was the first cryptocurrency and since then many cryptocurrencies have been invented and used. As a result, the popularity and importance of bitcoin have significantly reduced.
This has been a guide to the top difference between Bitcoin and Blockchain. Here we also discuss the Bitcoin vs Blockchain along with infographics and comparison table. You may also have a look at the following articles –