The earth as we see of today was way different several years ago. Also, it will be way different several years into the future. A full mechanized and digitalized world it would be. The roots of that digitalized world can be seen in the present hours. From ordering food online to selling houses, everything is executed with few clicks now. Even the trading, stocks exchange, and currencies are a click away. We are talking about cryptocurrencies. These are the face of the future regarding finance.
Bitcoin vs Blockchain
The main difference between bitcoin and blockchain is that bitcoin is considered as a digital currency, but, blockchain, on the other hand, is the digital record for maintaining crypto transactions. Bitcoin can be exchanged from holder to holder without any formalities. But, blockchain is like a calculation copy or our diary in which we keep the records of our expenditure.
If one enters into the sector of bitcoins, the essential thing he needs to know is that it’s a cryptocurrency. In real each bitcoin is a digital currency or digital wallet which you can carry your favorite electronic device. Furthermore, just like online payment, one can use bitcoins to pay for goods, receive bitcoins in exchange for sales, send bitcoins to contacts. Also, one can buy bitcoins by spending real money. When buying bitcoins, one needs to enter a crypto exchange like a market of bitcoins and trade.
On the opposite side, blockchain represents a record similar to the logbook. However, it is digital and highly encrypted. In short, it is a digital platform that keeps a record of every trade that ever took place in the cryptocurrency network. Now, as the name suggests, in blockchain, the data are secured within blocks. After which each block is connected or chained to one another. By this, whenever the computers pick up new data those are again shaped into a block and chained with the previous ones. Likewise, a robust chain of blocked information is formed which makes it tiresome for any hacker to mess with the data.
Comparison Table Between Bitcoin and Blockchain
| Parameters of Comparison | Bitcoin | Blockchain |
| Definition | It is a type of cryptocurrency that operates under the supervision of blockchain. | It’s a networking house that keeps a record of all cryptocurrencies. |
| Method of Functioning | Bitcoin transactions do not involve any third-party authority, as its sole trading depends on the owner. | Blockchain works as a logbook for all the transactions of bitcoins. |
| Future uses | Bitcoin is a fast and intangible way of transaction. Also the future of money exchange. | Blockchain has more room to turn into a global platform for many businesses. |
| Capabilities | Bitcoin, on the other hand, is only confined to trading markets. A task that involves selling and buying or for business transactions. | In addition to keeping records of the cryptocurrencies, blockchain also keeps records of other businesses and transactions. |
| Security | Whereas, the frauds and fake exchange over the internet in the name of bitcoins are not new to our eyes and ears. | When it comes to data of the transactions, it is sort of safeguarded by the strong encryption of the blockchain network. |
What is Bitcoin?
In simple terms, as stated earlier, bitcoin can be understood as a digital form of currency. Unlike material cash, it does not have any upper hand in control. Its exchange solely lies in the hands of its owner and the buyer. Also, unlike material currencies, they have a varied capability of being traded.
The currency first started operating in 2009. With such fame, due to its increased illegal use, it has been restricted in some parts of the world. A lesser-known fact is that its developers remain unmasked to date. When bitcoin came into being in January 2009, in no time, it absorbed high popularity. Also, simultaneously, it contributed to the birth of several other cryptocurrencies.
Now the exciting thing about these bitcoins is their price. When we lay eyes on the records of its pricing, after the two years of its launch, it held the value of US$0.30 to US$30. But it fell drastically to US$2 later on. After that, the price in 2012 again rose to a sky-high amount of US$266. And then faced the same drop and got stuck at US$50. Therefore the pricing has been variant over the running years.
The part of bitcoins being illegally used can’t be ignored. Although the blockchain is strong to invade any malware, hackers somewhere get hold of the loopholes. Bitcoins being a thing of the future and so flexible, every pair of eyes with a look of greediness stares at it, searching for a chance to slip it into their pockets. Almost half of the transactions which are executed through bitcoins turn out to be illegal.
What is Blockchain?
Blockchain, also a form of digital being, can be described as a storehouse of data. Data regarding cryptocurrencies, of course. Due to the variability of the forms in which data can be stored, blockchain also houses the data in different forms. Hence to make it easier to read such a vast network of digital trading, blockchain is designed.
There’s an exciting way to how blockchain houses the data. Simply by the name, one can understand that blockchain stores its data in the form of chains of blocks. This network collects the data and shales it into a block. Similar to the memory chips, each blick has a certain amount of storage capacity. Thus, when that storage capacity is saturated by the data collected, the network forms a chain and gets it attached with the previous block. Likewise, the blockchain houses a vast amount of data.
However strong the protection may be, the lies are a loophole. But blockchain is no easy net to cut through. The way of feeding data into the blockchain is quite synchronized. We understand that in a blockchain, new data is always added to the previous block, which results in secured data storage of every block. So likewise, every block has its different identification based on the time, date, and other details. Also, they are all connected.
Thus, for any hacker to tamper with anyone’s block, it would require altering all the blocks at one go. However, a vast amount of data and network to collectively tamper with would be a sweat-drenching task for any intruder. Likewise, the tries of the hackers would go in vain without proper resources and a hacking force as strong as the chain block system.
Main Differences Between Bitcoin and Blockchain
- Bitcoin is a type of cryptocurrency whose operation works under the blockchain. But, blockchain is a networking data house that oversees the trading of bitcoin and other cryptocurrencies.
- Bitcoin transactions are free from any third-party authorities, and their trading only lies in the control of its owner. While blockchain is like a logbook for all the transactions that take place through bitcoin.
- Bitcoin has its use in the trading field for selling, buying, and exchange. Whereas blockchain is not only confined to keeping records of cryptocurrency but is also capable of other businesses. Whereas
- Bitcoin is the future face of currency. It can only be used in businesses that involve money. On the other hand, blockchain can be used to share additional data also.
- The amount of corruption behind the mask of bitcoin is not new to people. But, when it comes to security, blockchain is a few steps ahead with its secured chain of blocks to keep the data safe from any hackers to lay a finger on.
Conclusion
The difference between bitcoin and chain block is clear now to some extent. Some extent because this is no one-night thing to understand. With the difference in between them, comes an in-depth analysis. Whereas chain block is the face of the vast network within which the digital data is stored and processed. Bitcoin is a small segment of that network. Or in a simpler version, bitcoin can be considered a branch that operates under a chain block.
Now both may seem quite similar. That’s where the confusion arises. The digital era is, of course, hard to get. Therefore to understand cryptocurrency and its workings is a long way to go. The bitcoin, under the cryptocurrency, but there are also many others like bitcoins such as dogecoin, bitcoin, bitcoin cash, etc.
References
- https://www.inderscienceonline.com/doi/abs/10.1504/IJCIS.2019.098835