Blockchain Vs Bitcoin

Blockchain vs Bitcoin

Blockchain Vs Bitcoin

Are blockchain and bitcoin same? Or they are completely different from each other? These are some of the questions beings asked by professionals these days. However, these two technologies are related to each other. Let us discuss these two technologies in brief.

If you are in the financial services business, you will know about the term “cryptocurrency” and the technologies associated with it. A fascinating technology, but the definition in the google or wikipedia is making it deliberately complex. Let us break these fake difficulty wall that is built around the blockchain technology.

What is BlockChain?

Blockchain is a ledger or a database comprised of the bitcoin transaction records. It is an easy way of passing information from A to B in the simplest and more trusted manner. Blockchain is open and secure and has been programmed so that it can be easily accessible to all.

For those, who are breaking the heads with this technology, it is actually simple when it is written in “English” rather than in the business or finance terms. The word blockchain, when broken, block+chain, gives the two words block and chain.

Blocks – Blocks, a plain meaning of this word is a large building, that can be divided into apartments, studios, rooms or flats.

Chain – helps to connect any two entities irrespective of their nature.

So when it comes to cryptocurrency, block is a large book that will store information. It is like one big memory card that will have the data stored and retrieve, edit or modify them when required.

Let us see this with another guy who performs more or less a similar function like blockchain.

When you visit any website, you would have read a pop-up form telling that, “The website uses cookies in the privacy policy to provide a better experience to you” with the button accept. When you click the accept button, information about you is stored. 

Hence this technology is growing stronger and is being used by even small transaction across various industries. This technology has been developed such that it can adapt across different industries and can be changed according to high-quality standard as per the company requirements.

What is Bitcoin?

Bitcoin is digital currency or a computer file stored in locations known as wallets. The bitcoin wallet can be online or it can be stored in hardware device. This bitcoin wallet looks like strings of numbers and letters. It is released as open source software in 2009 and is the world’s first cryptocurrency.  Bitcoin has a limited supply; there are only 21 million bitcoin available. Bitcoin solves “double spend” problem distributed network.

Bitcoin is a cryptocurrency (a form of digital currency) that is used to trade transactions over the online portal. Bitcoin, considered as one of the successful technologies to empower the online transactions.

Bitcoin is built based on the blockchain technology. So, the functioning and the operational part remains same at core, differs in the structural and technology part. Blockchain stores information in their blocks. Bitcoin uses strings of letters and numbers and they are linked using an in-built algorithm. Algorithm main function is to create Bitcoins storage units.

Bitcoin is an evolved blockchain. The advanced version where the transactional information like account number, confident credentials, amount, and balances are all opted in for higher level of security. With Bitcoin, the payment over online is made with a rigid robust firewall.

Bitcoin is also a form of currency, so good news is you can earn them. The currency can be traded with other forms of currencies (refer the bitcoin foundation for more specific information on this). When written as Bitcoin, it is technology and bitcoin is the currency.

How do you earn the bitcoin? By mining.  Not the stone age mining, but the one you can do by playing video games, writing blog posts. The currency will be paid is in crypto, AKA, bitcoins. It is like getting paid in GBP, EUR, USD.

But miners actually get paid for in real whenever they verify a bitcoin transaction.

Where is it stored? In a cookie

This cookie is now going to track your usage, interests, pages where you spend more time, your frequent downloads or anything you do on the web. So, the label of the cookie will not be necessarily your name. But with some unique ID, to differentiate you from the rest of other billions of web users.

Now, in the case of the blockchain–it–stores your information about the transaction you made online. There are over millions of e-commerce stores, paid registration forms, ticket bookings or a subscription service to a product or an applications on online. When you make a payment, a transaction is made from your bank account or e-wallet to your vendor. This has to be,

Secure

since the transaction happens over a virtual platform, where you can’t see the money handed over.

Successful:

The exact amount needs to be taken from one account and deposited in another account correctly.

Stored:

The transacted payment needs to be recorded somewhere in online, like we have a ledger.

So, your blockchain is a currency in the digital world, that has information about your transaction. The information are encrypted to protect them from fradulents.

Comparison Between Blockchain vs Bitcoin

BlockChain

       Bitcoin

Blockchain was coined by Stuart Haber in 1991. He is the first person to work on block chain. Haber, along with Bayer and Stornetta upgraded the blockchain efficiency using the Merkle Trees–a cryptography design

Later in 2008, Satoshi Nakamoto, improvised the technology by customizing their unique IDs while linking the blocks.

Blockchain is a ledger which records the transactions that help to peer to peer transaction.

Satoshi Nakamoto derived the Bitcoin entity. He came up with the cryptocurrency format while he was integrating ideas for the cryptocurrency technology –blockchain–from the cypherhunk community,

The new cryptocurrency had the name Bitcoin.

It is an unregulated digital currency system that allows you to transfer assets across the globe using blockchain technology.

Blockchain is a public ledger

Based on a specific kind of distributed ledger or rather a one kind of distributed ledger: a blockchain

The technology uses blocks, chunks of memory file kind of entities to store information about payments made.

The technology uses string, linked with numbers and letters, memory file kind of entities to store information about payments made.

The unique ID that differentiates the blocks are called as Hashkeys

The unique ID that differentiates the blocks are called as Hashkeys

Blocks linked in the blockchain is the public ledger

Bitcoin are strings of letters and numbers, is a cryptocurrency

The ultimate aim of the blockchain is to establish a high secure and safe environment for the peer-to-peer transactions at low cost

Bitcoins objective is to increase the transaction speed and simplify the process with minimal restrictions from government and other legal bodies

Blockchain restrictions are never limited to only currency. It can also help to transfer stocks and properties

Bitcoin can be traded only in the form of currency.

 

The scope of blockchain is promising since it more open to customisations. Many companies are already backing up with blockchain technology.

Bitcoin scope is minimal because still it is in revolution.

Blockchain open-source customisation makes it available to any kind of industry

Since the focus is on reducing cost and complexity, it fails to cater to the needs of all industries

Blockchain is transparent. The compliance is with KYC and they can work with various businesses.

Bitcoins are anonymous. Although we can see the transaction details but still the interpretation is not easy because the numbers are not in particular sequence

It is a decentralised system. When there is a transfer of payment, two different parties that don’t trust each other can also share and access the public ledger system. There is no centralised system.

Bitcoins are also decentralised system but the technology geeks promised to make it more centralised in the future era of payments.

Compared to the modern digital transaction technology, Paypal or Visa, blockchain technology is comparatively considered to be a slow form of transaction technology

The speed of transaction is the underlying core of the evolution purpose of Bitcoin technology.

Blockchain also pose no reliable advantage over the centralised database, but however the permissioned blockchain is more confidential than the other databases.

Anybody can write over the block in a bitcoin chain and can also read, meaning it is read-uncontrolled and write -uncontrolled

Blockchain has the technology to transfer anything from currency to properties.

Bitcoin has a limited trading as a currency.

Blockchain technology is growing across the industries and is open to changes and hence many MNC are adopting this technology.

Bitcoin has limited growth and is mainly used as a digital currency.

Conclusion

In the latest times, surfing over the internet is becoming visibly viral all over, irrespective of gender or interest of the users. People learning about technology seems encouraging to discover new things and thrive for constant improvisations. And the digital currency is like the robotics in the software industry. Understanding might require a bit of intentional interest when it comes to cryptocurrency but the development is great.

Looking at all the discussion we can conclude that bitcoin is not blockchain but instead, Bitcoin is transacted over an open anonymous network. You can say blockchain is an operating system and bitcoin is one of the many applications that run on that system.

Leave a Reply

Your email address will not be published. Required fields are marked *

Looking for Online Training