Bitcoin vs Blockchain Differences
Bitcoin is a digital currency that utilizes cryptocurrency, and it is controlled by a decentralized authority, which is not like government-issued currencies. In contrast, the blockchain is the type of ledger recording all of the transactions taking place and helps facilitate peer-to-peer transactions.
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Whenever we talk about Bitcoin and blockchain, people generally think they are the same because Bitcoin was the first-ever blockchain application. People usually mistake Bitcoin vs. blockchain technology. Since then, blockchain has undergone huge technological changes, and now blockchain is even catering to other industries.
Table of contents
Bitcoin Vs Blockchain Explained
BitcoinBitcoinBitcoin is a digital currency that came into existence in January 2009, speculated to be created by Satoshi Nakamato, whose true identity is yet to be authenticated. It provides lower transaction fees than the traditional online payment systems, is controlled by the decentralized authority, and is not like government-issued currencies.read more is a digital currencyDigital CurrencyDigital currency is a currency found only in an electronic form as it is used for trading over the internet. They are famous for allowing transparent and secured digital payments. Although their popularity is constantly growing, their adoption as a reliable alternative to physical money is nowhere close. Some of the popular digital currencies are Ethereum, Bitcoin, and Litecoin.read more that can also be called as a top cryptocurrencyTop CryptocurrencyCryptocurrency refers to a technology that acts as a medium for facilitating the conduct of different financial transactions which are safe and secure. It is one of the tradable digital forms of money, allowing the person to send or receive the money from the other party without any help of the third party service.read more. It was mainly created to speed up cross-border transactions, reduce the government’s control over the transaction, and simplify the whole process without having third-party intermediaries.
Bitcoin is not a formally accepted medium of payment, but people worldwide use it for various kinds of transactions. Since it is not physically present, it is safe and secure, and blockchain is the best way to do these transactions.
The blockchain is a type of ledgerType Of LedgerLedger in accounting records and processes a firm’s financial data, taken from journal entries. This becomes an important financial record for future reference. It is used for creating financial statements. It is also known as the second book of entry.read more that records all the transactions 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 Bitcoin transactions. 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 adapt to different areas and industries such that the technology can be changed according to the high-quality standard that each company requires.
Infographics
Now that we understand the basics of Bitcoin and blockchain as a whole, let us understand the differences through the visual representation given below. The infographics shall make it easier for us to understand the six major differences of Bitcoin vs blockchain technology and other such factors.
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Key Differences
Let us understand the key differences between these two new-age finance concepts through the points below. These points reiterate the differences in their fundamentals and intricacies.
- One of the key differences between Bitcoin and blockchain is adaptability. When we look at Bitcoin, we look at something that is rigid and concentrates on cross-border transactions. While blockchain first started as a ledger of the Bitcoin currency, it began to improve and slowly started catering to other industries. It has made continuous improvements in technology, and now blockchain is the hottest thing running in the market.
- 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 they can be transparent. Bitcoin is a cryptocurrency used to reduce the transaction charges and transaction time of cross-border transactions.
- Bitcoin is a little bit of a 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, which 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 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.
Head-To-Head Differences
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. |
While both Bitcoin and blockchain have their 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 people’s lives easier.
Bitcoin was the first cryptocurrency, and since then, many cryptocurrencies have been invented and used. But with the improvisation of blockchain technology, it has more applications than Bitcoin. As a result, the popularity and importance of Bitcoin have significantly reduced.
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