Many people keen on this domain often get confused, saying that bitcoin and Blockchain are two sides of the same coin. They tend to use the two interchangeably. If you are among them, then you are not alone as there are many souls like you who tend to commit this mistake or remain in this confusion. The reasons are obvious. Both are interlinked to each other very closely. In this post, we will understand the two terms and the way they are linked to each other.
Understanding the difference between the two
If you are wondering as to what are these two, let’s kick off the discussion as under:
What is Blockchain?
Blockchain can be called a software program that helps in storing much of the data in plain terms. Or it can even help in getting more into the technical jargon that is seen opening and not over any database that helps in containing the data all along with the blockchain technology and then are seen dividing them all over the different PCs and thus forward things into the decentralized way. This, in turn, remains the key thing that makes this technology so alarming and transformative. Unlike any centralized and traditional database, one can find several records being processed while going for any central admin, like how the entire technology seems to be transparent and then the database is checked. Still, one can find the transparency remains at the higher side along with the secured option the Blockchain gives you. This is the reason why there is no hacker seen to be the target of the same. Get more info at this platform where you can get to know more about bitcoin trading.
One can find Blockchain to be a technology, which is linked with bitcoin and thus is being developed specifically for digital coins like bitcoin. Hence these coins can remain the key example for the technology that tends to remain in the active mode without actually relying solely on the technology. Without the same, there is no chance of getting BTC. Hence, they are closely linked to each other, and at times, even these terms are used in the same way. Nonetheless, it may not seem to be the same thing either, as they still differ somehow or the other.
What is Bitcoin?
If you define bitcoin, it is nothing but a decentralized kind of digital currency that tends to remain a P2P electronic payment option that helps consumers transfer the digital coins without any worry or identity. BTC can be called the best example when digital coins are concerned, and they have their network to operate, which is interesting again supported by Blockchain. Hence, one can find Bitcoin to be using the same technology when carrying out the business with crypto. Thus it would be fair to say that Blockchain is somewhere close to BTC. However, if you look beyond the applications that this technology offers, the scene would be different in a big way.
As we see both BTC and Blockchain be very much linked to each other, we may seem to be confused that the two differ in a big way, and one can even find a much wider kind of apps that may go beyond digital currency networks. The fact of the matter is the potential one can witness in the Blockchain is so effective that one can find too many things working the best. People even have to rely on a technology that further is going to fuel up the revolution to carry out the businesses just like how we see the internet doing the same.
Thus if you look at the crux of the discussion, Bitcoin can be called a digital currency, while Blockchain is a technology that helps in powering this coin. The digital coin gets the power from this technology, and the latter is known to have different applications, and thus it is not just limited to BTC alone. We see BTC giving good privacy when it comes to security while Blockchain maintains good transparency as well. In case if you are applying in different domains, including the Fintech world, it comes with something interesting.