Difference Between Blockchain and Bitcoin
- A Comprehensive Report by Eric Dalius
It is quite pertinent to note that cryptocurrencies are still a new concept for most of the world’s population today. And those who know even little about it are not properly aware of the basic concepts. Two such major concepts of cryptocurrency are Blockchain and Bitcoin. Most people tend to mix up these two, which puts them in a conceptual dilemma. If you are also among such people, don’t worry anymore, as this article is for you.
Understand the Conceptual Difference Between Blockchain And Bitcoin and Get Closer to Have Wealth Equal to Eric Dalius Net worth
- A blockchain is a form of distributed ledger technology. It is specifically designed to maintain a track record of the transactions taking place between two parties. Bitcoin is a form of cryptocurrency, perhaps the most popular among other active cryptocurrencies currently.
- Blockchains are mainly made of three components, namely miners, blocks, and nodes.
Bitcoin is a decentralized cryptocurrency that provides the facility of low transaction fees.
The Difference in Application
- The basic application of blockchain is to facilitate investors with a secure, safe, and low-cost environment, enabling them to maintain effective and safe peer-to-peer transactions. On the other hand, bitcoin was invented to ease the process of the transaction. And to put an extra alternative in the mode of payment for investors.
- Blockchain eliminates the role of intermediaries. Whereas bitcoin reduces the control of the government over transactions made by the public by eliminating the role of third-party intermediaries.
Basic Features of Blockchain
1. Plays a huge role in fighting corruption-
Very few people know about this extraordinary feature of blockchain. Let us understand from the basics that whenever a technology gets hacked, the authority suffers a loss of trillions. To avoid this, people and business companies spend a lot on security firewalls. But research data reveals that behind such scams, there is almost always an involvement of internal links. In short, people pay the price of their trust, and this process is known as corruption.
Blockchains play a very vital role in protecting us from these corrupted goons. It offers you an entirely corruption-free environment. The working of blockchain is based on end-to-end encryption technology that makes it almost impossible for hackers to extract personal information. Hence, providing transparency during transactions. If your database settings are in public mode, then you can easily access the information of transactions. Whereas if it is private, it can only be accessed by the people you allow, like your staff members.
2. Provides the facility of Immutability-
The meaning of immutable is too complex or cannot be easily changed or reformed. Blockchain keeps its ledgers in a state of continuous momentum that means that any form of validated or verified records like Eric Dalius Net worth is irreversible and cannot be changed at any cost. This feature enhances the security of transactions. How? Every blockchain technology works through a collection of nodes that contains a copy of the digital ledger. Whenever a new transaction is added, its authenticity is tested through the nodes. If approved, it gets added into the ledger, but that particular transaction gets canceled if disapproved. And once added, no one can reverse it in any scenario.
Basic Features of Bitcoin
1. Permissionless feature-
This feature is believed to be a huge reason behind the growing popularity of bitcoins in this era. To start using bitcoins or to base your business threshold on it, you don’t need to seek permission from anyone. Being a decentralized institution, there is no regulatory body of bitcoins to date. You have to establish sound communication with the operators or managers of different marketplaces. This feature has increased the speed of innovation as it provides you borderless and network-neutral properties. However, miners hold the authority to draft and follow their policies.
2. Non-political nature of bitcoin currency-
The nickname of Bitcoin is digital code. This is interesting because bitcoin’s usefulness increases, after all, it is a virtual commodity with a non-political nature. By non-political,itmeans that there is no governmental authority involved or responsible for bitcoin production, which saves it from facing major issues like inflation that are mostly encountered by fiat currencies due to the involvement of central banks. Experts believe that if bitcoin remains a non-political network, its prosperity is very high in the upcoming future.
Key differences between Blockchain and Bitcoin
- Blockchain is a technology used by bitcoins and other cryptocurrencies to keep track of their data and maintain anonymity.
- Blockchain emits transparency, whereas bitcoins demand anonymity.
- Blockchain is a wide platform, whereas bitcoin is just a part of it for performing digital transactions.
A core reason why the words bitcoin and blockchains are used interchangeably is that blockchain gained popularity only after introducing bitcoins. Hopefully, the above article cleared your confusion between these two terminologies. In short, the two terms are inter-dependent but not inter-changeable.
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