Bitcoin is an exceptional cryptocurrency with some phenomenal strong stout such as anonymity, user secretion, and low transaction. So undeniably, bitcoin can help you in making money.
The so-called inventor of bitcoin, Satoshi Nakamoto, invented bitcoin to free us from the domination of centric parties. However, you can still make a considerable amount of money from crypto trading. If you want to get profitable results in your bitcoin trading venture, check the tips on running a successful bitcoin campaign. Many crypto novices think that both bitcoin and blockchain are similar to each other and are collective terms. However, there is a drastic difference between bitcoin and blockchain.
Both bitcoin and blockchain have an entirely different foundation. Here is a complete portion demonstrating how blockchain is different from bitcoin. So without wasting any further dues, let’s have a glance.
Basics of Bitcoin
The basics of bitcoin and blockchain will automatically demonstrate the differences between bitcoin and a blockchain. In addition, Bitcoin has some robust features such as flexibility while processing transactions, lower transaction fees, decentralization, and many more.
Bitcoin allows you to process transactions without the involvement of government authorities. Furthermore, Bitcoin is a decentralized cryptocurrency which means bitcoin transactions do not incur banking fees. All the more, processing international transactions in the bitcoin network is exceedingly easy.
What is Blockchain?
Blockchain is one of the leading robust and sizzling technologies. Blockchain is a database that stores information regarding bitcoin transactions. Bitcoin’s blockchain is one of the largest public databases as the size of this blockchain is nearly 330 Gigabyte. All the more, bitcoin underlies the technology of blockchain and peer-to-peer networks to achieve decentralization.
Differences between blockchain and bitcoin
Here are some quick differences between bitcoin and blockchain, so let’s have a look.
Bitcoin is a digital token or cryptocurrency; conversely, blockchain is a public distributed ledger that underlies a distributed ledger technology.
Blockchain can exist without bitcoin as there are ample comprehensive blockchain applications in other industries, but bitcoin underlies the technology of a distributed ledger.
You are familiar with that bitcoin is pseudonymous as you can process transactions in the bitcoin complex without even revealing your actual identity. However, blockchain is completely transparent as every transaction on the blockchain complex is public. Blockchain broadcasts bitcoin transactions in the hashing function, making it a bit hard to read and understand.
Bitcoin is a token and the complex transfer tokens or funds in between the users. However, you can use blockchain to broadcast any information; you can even store contracts between two parties. Smart contracts are one of the fascinating features of blockchain, and these contracts are self-recording and autonomous contracts. Moreover, these contracts are immutable, just like any other information on the blockchain.
Connecting dot between bitcoin and blockchain
Since blockchain and bitcoin are entirely different technologies and blockchain powers bitcoin, there is a connecting dot in between these two technologies. Bitcoin miners are the connecting dot in between blockchain and bitcoin. You are familiar with the fact that people perform bitcoin mining to earn a massive stack of money.
Bitcoin mining is the progression of verifying the bitcoin transactions, and bitcoin miners broadcast these transactions to the blockchain. In a nutshell, miners verify and broadcast every possible transaction of the bitcoin complex.
As a reward of this process, bitcoin miners earn a block reward which consists of a specific number of bitcoins with the transaction cost. Bitcoin miners are only able to verify the transaction if they solve a math puzzle. Proof of work defines that a bitcoin miner has to solve the math puzzle at first glance in contrast to other miners.
Blockchain is not merely expanding in the financial segment but also in several other industries. For example, almost all industries such as the healthcare industry, movie industry, and sports industry have blockchain-based models.
The prominent reason is that blockchain has fascinating features such as smart contracts, immutability, transparency, and proof of insurance and auditing supply chain. Such features can replace the traditional database in a nominal range of time.
These are some of the crucial differences between bitcoin and blockchain.