Difference Between Bitcoin vs Blockchain
Bitcoin vs Blockchain in this, Bitcoin is a kind of digital currency (cryptocurrency) created to simplify the transactions involving the transfer of the currency between the different users without having third-party intermediaries. Bitcoin crypto-currency is powered by Blockchain technology. It is just one example of crypto-currency, as the technology of the Blockchain powers other crypto-currency networks.
Blockchain refers to the data structure or the ledger which is used in order to store the various informations related to all the transactions that occur, including but not limited to Bitcoin, where all the things once stores in Blockchain cannot be modified or changed at a later stage due to which Blockchain is most secure, open and easily accessible. Blockchain is a decentralized one that eliminates intermediaries as it enables transactions on peer to peer basis.
Head to Head Comparison Between Bitcoin and Blockchain (Infographics)
The Top 5 comparison between Bitcoin vs Blockchain:
Key Differences Between Bitcoin vs Blockchain
The key differences between a Bitcoin vs Blockchain are provided and discussed as follows:
- The main difference with respect to the Bitcoin and the Blockchain is related to its scope or adaptability, where in case of the Bitcoin, concentration is only on the trade of the currency enabling the cross border transaction whereas, in the case of the Blockchain, the scope is not limited to any single-use rather it can be used to transfer many types the things that include currencies, property ownership rights, etc. Initially, it was started as the ledger of Bitcoin, after which it included the other types of industries also. The applications of the Blockchain are much wider when compared with the applications of Bitcoin.
- Bitcoin follows the concept of anonymity as one can have the Bitcoin address without any need to disclose anything related to its identity in its address. Along with this, the transactions are recorded in numeric codes that are not understandable by the people. On the other side, the Blockchain follows the concept of transparency. This is so because the Blockchain is used in the various different types of industries where it has to take care of the rules and regulations of those industries, and thus, it allows full access to the public with respect to the transaction involved in that.
- Bitcoin is a kind of digital currency also known as cryptocurrency. It was launched in the year 2008 to bypass any of the control of the government of the countries over the currencies and make the online transactions simple for the users as it removed third-party intermediaries that were used for the payment processing.
- On the other side, Blockchain is the technology used to maintain the transaction ledger of Bitcoin. Under this technology, transactions pertaining to Bitcoin are stored and then transferred on the peer to peer network using the distributed ledger. This ledger information is accessible to all.
Bitcoin vs Blockchain Comparison Table
The table below summarizes the comparisons between Bitcoin vs Blockchain:
| Basis of Comparison | Bitcoin | Blockchain |
| Nature | Bitcoin is crypto-currency. | It is the data structure or ledger. |
| Transfer | The scope of Bitcoin is limited against the transfer of the currencies. | The scope of the Blockchain is wide as it can transfer many of things, including currencies, property ownership rights, etc. |
| Motive | Bitcoin was launched to bypass the currency control of the government of the countries along with simplifying the online transactions by the users by way of removing the third-party intermediaries that were used for the payment processing. | Blockchain is underpinning technology that is used in order to maintain the transaction ledger of Bitcoin. |
| Nature | Bitcoin focuses on the concept of anonymity. Here the identity of the users is not required to be disclosed in the Bitcoin address. Also, the recording is done in numerical codes which people cannot understand. | Blockchain focuses on the concept of transparency. It is very much required in the case of the Blockchain as it works in different types of the industry and thus required to ensure compliance of that industry the rules and regulations. |
| Flexibility | It is less flexible with respect to the adaption of the new changes. | It is more flexible as it can adapt to any of the new changes, thereby enabling it to fit most of the types of industries in the market. |
Conclusion
It can be concluded that Bitcoin is the type of digital currency or the crypto-currency that is used in order to transfer the cross border currencies with the advantage of simplifying the transactions by removing the intermediaries and removing the involvement of the government of the countries in the currency control. Bitcoins are powered by Blockchain technology. Ledger recording the transaction with respect to the Bitcoin is maintained using Blockchain technology.
However, things stored in the Blockchain cannot be modified or changed at a later stage by any of the person or the technology. This makes the Blockchain one of the most secure, open and easily accessible technology. Also, there is a high level of accuracy in the Blockchain as human involvement is not there in the verification process. Thus both Bitcoin and the Blockchain are very useful in today’s world of digitalization, where huge numbers of persons are involved in the cross border transaction.
However, Bitcoin is not that flexible, but the Blockchain is which increases the application of the Blockchain when compared with Bitcoin. Still, since both Bitcoin and Blockchain are very much inextricably linked, it took a good amount of time for the users to realise that the Blockchain applications are actually much wider. They are presently beyond the network of the crypto-currency. With the much wider applications and its nature of secure, open and easy access, many believe this technology in the future will revolutionize the way of doing business.
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