Those who are without – having little or no knowledge about cryptocurrencies – will seldom think Bitcoin and Blockchain are the same. However, the two terms may be synonymous to cryptocurrencies but they have some dissimilarities [between these two technologies] that set them apart.
Before I proceed further; I will like to define the two terms – Bitcoin and Blockchain.
Bitcoin is a digital currency that can be used as a medium of exchange in a peer-to-peer network. It permits the transaction between users without the intervention of any intermediary. Though a digital currency, Bitcoin can be traded and used to pay for goods and services rendered by a couple of merchants accept that such (means of payment).
Blockchain, on the other hand, is a distributed ledger unto which the digital transactions taking place in a peer-to-peer network are recorded. It is usually generated when there is a repeated grouping of freshly sanctioned transactions into block.
I shall now touch on some of the differences between the two technologies under the following headings:
Blockchain is a much more substantive technology in that it covers a whole lot more than just cryptocurrencies. Technologists have etched out means of utilizing Blockchain in other far-reaching ways as majorly observable in the financial market. Again, it is safe to say that there wouldn’t have been Bitcoin without Blockchain. And Bitcoin is just what it is – a digital currency.
While Blockchain is operated as a distributed ledger – a platform in itself – which shows encrypted transaction that has been verified by ‘miners’; Bitcoin technology is a decentralized payment system used in peer-to-peer digital setting.
The fact that Bitcoin technology allows transactions to take place without the users (that is, the ones carrying out the transactions) being traceable has often left people with some doubts on how secure the system is. Blockchain technology has however been found to be a more transparent one as it is traceable and does not give room for any form of illicit alterations.
There’s more to say about Bitcoin and Blockchain technologies but it’s really cool to leave it short and simple. You can, however, visit https://trulycoin.com to find out more.