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What Is the Difference Between Bitcoin and Blockchain?

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Danial jack
What Is the Difference Between Bitcoin and Blockchain?

Did you realize that the terms blockchain and Bitcoin aren’t synonymous? You’re not alone if you’ve been using the two technical terms interchangeably; many people do, owing to the strong relationship between blockchain and Bitcoin. This post is for you if you’ve ever scratched your head wondering about difference between the two technologies. We would try to highlight the distinctions between the two terms so that you have the much-needed clarity.  

What is Blockchain? 

A blockchain, to put it in few words, is a specific kind of database used to store data. To put it another way, it’s an open, distributed ledger (database), which means the information stored in the blockchain is distributed (duplicated) among multiple computers and hence decentralized. 

One of the number of things that makes blockchain so revolutionary is its decentralization. Blockchain is the technology that powers the cryptocurrency Bitcoin; however, it is not the only distributed ledger system based on blockchain technology. Other cryptocurrencies have their own blockchain and distributed ledger designs. 

 What is Bitcoin? 

Bitcoin is a decentralized digital currency, or peer-to-peer electronic payment system, that allows users to send bitcoins anonymously without the involvement of a third-party authority (like a bank or government). However, Bitcoin is only one type of cryptocurrency; blockchain technology also powers other cryptocurrency networks. So, while Bitcoin trades digital currency using blockchain technology, blockchain is more than simply Bitcoin. 

 A Brief Breakdown of the Bitcoin Blockchain 

Since the innovation of Bitcoin in 2009, it has been the first decentralized cryptocurrency. Moreover, it was unusual because it tackled a prevalent problem in digital currencies: “double spending.” This guarantees that each Bitcoin is one-of-a-kind and cannot be duplicated. Blockchain technology was devised to accomplish this by its secretive creator(s), known as ‘Satoshi Nakamoto.’ 

The Bitcoin blockchain is a decentralized database that keeps track of all Bitcoin transactions in a public, permanent ledger. It is entirely transparent to everybody, incredibly secure, and devoid of any central authority figure. Because all Bitcoin transactions are immutable and confirmed by a network of independent miners, you always know where your money has gone. 

Because the Bitcoin blockchain was the first and continues to be the most important example of a blockchain, it’s simple to see how they’re occasionally confused. There is more of a distinction now that individuals are adopting blockchains for different purposes. While blockchain was created for digital money, it is currently being used for smart contracts and tracking items along the supply chain. There are other types of blockchain as well. In contrast, Bitcoin is a public blockchain; private blockchains function according to distinct regulations. 

 A Quick Lowdown of The Key Distinctions 

To wrap things up, here’s why blockchain and Bitcoin are two entirely different things: 

  • Blockchain is widely regarded as a distributed database, while Bitcoin is a cryptocurrency. 
  • Blockchain technology underpins Bitcoin, but it has a wide range of applications. 
  • Anonymity is promoted by Bitcoin, whereas transparency is promoted by blockchain. However, blockchain must comply with strong ‘Know Your Customer standards’ to be used in some industries (especially banking). 
  • Bitcoin is used to transmit money between users, whereas blockchain may be used to move anything from information to property ownership rights.

In conclusion, Bitcoin and blockchain are pretty different in terms of what they are, where they may be used, and how they may be used; nevertheless. However, they have one trait: to make people’s lives easier. Join Fanspel, the first blockchain-based fantasy platform and stand a chance of winning amazing rewards. 

http://www.thebitcoinerworld.com/what-is-the-difference-between-bitcoin-and-blockchain/

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