Let’s start by saying Blockchain and Bitcoin aren’t the same things. Although they are associated together, still that doesn’t necessarily mean that both are same. However, I can say that they have a close connection and this can sometimes confuse the people who are new to the blockchain. Let’s see what the debate blockchain vs bitcoin show us.
Since Bitcoin was the first blockchain application; many people use the term ‘bitcoin’ instead of the blockchain. I guess it’s how the misunderstanding started in the first place. Since I’ll be clarifying what they are today, you’ll know the difference in no time!
Blockchain vs Bitcoin: What Is Bitcoin?
Bitcoin is one of the many cryptocurrencies that people use nowadays. It was the first application introduced back in 2009, and soon after the initial release, it showed an exceptional system that no one ever saw before.
To get your hands on bitcoins, you have to mine it. But how do you mine it? It’s really simple actually, all you have to do is solve complex mathematical problems using your computer system. And, you’ll be rewarded with bitcoins after a successful result.
Pretty cool, right?
Bitcoin uses a particular kind of blockchain technology to make all the transactions anonymous and decentralized. Every transaction is recorded on a ledger system but as they are anonymous no one can actually track the transactions back to its source.
Also, you can make international payments using it without any regulations or extra fees. It’s an excellent option for small businesses as you won’t be facing any additional fee-related hassles. All the bitcoins you earn will get stored in a digital wallet, and you’ll be using it online from there.
Blockchain vs Bitcoin: What is Blockchain?
So, what is this blockchain technology that shocked the whole world right after it was introduced? Well, it’s a decentralized ledger system that logs in every transaction made between two peers.
This technology will allow any user to make and confirm transactions without the need for any central authority. Using this impressive tech, you can transfer funds, vote, settle different trades, share official documents and can do many more than these.
The system is far greater than bitcoin or any other cryptocurrency and can be integrated into many other applications.
If we see from the business perspective, blockchain can be the next best innovation that can genuinely change the ways of our business system. By integrating this technology, you’ll be able to improve the business procedures between two companies and ultimately lower the negative impacts of trust issues.
Again, this will increase the number of returns for your every dollar spent compared to other traditional means.
Now Banks Prefer Blockchain Over Bitcoins
As the reputation of the blockchain tech is far greater than bitcoins, many financial institutes are more eager to integrate the blockchain. Many bank authorities are showing great interest in blockchain technology and want to make this the permanent banking system.
Many big industries such as NASDAQ, Visa, Citi wants to make blockchain a potential paying system, simply because blockchain imposes more positive nature than bitcoins.
But why this rush is toward blockchain?
Well, the case is simple. By utilizing all the aspects of this new technology, banks can increase their transaction efficiency to a great extent. This new tech promises a ledger system that updates itself, so if the banks use it, they can get rid of the unnecessary software, which becomes outdated each year.
However, some experts claim that banks shouldn’t use blockchain only to increase their flaws in the transaction process, but also to alter the overall system entirely.
If something like this happens, just imagine how our lives can become much simpler and more comfortable, right?
The blockchain is already imposing the financial needs of many peers. Many companies have already upgraded or created new blockchain technology just to make it even better than before. So, with every upgrade, it’s becoming more and more stable and useful.
Therefore, if you think about who has the higher up between blockchain vs bitcoin, I can surely say it’s bitcoin.
So, How Are They Both Different?
Bitcoin uses a type of blockchain technology, but it doesn’t define the overall system. Not every blockchain tech is bitcoin, but bitcoin is only a cryptocurrency working with the help of the blockchain.
As I have said earlier that there are many other uses of blockchain including financial matters, here bitcoin falls into the financial category.
It’s merely a cryptocurrency and somewhat unstable now for that matter. You can use this cryptocurrency to make online payments as real money would. Compared to bitcoin, blockchain goes way beyond its potential.
Blockchain is a ledger system where you can record the transactions of different cryptocurrencies, trades, and other data forms. The system is the root of most cryptocurrencies, which adds a right amount of security in the whole process.
To summarize the whole situation of Blockchain vs bitcoin, I can say that they are really different from each other. Blockchain is the root core of the bitcoin, so it depends entirely on the blockchain. On the other hand, blockchain is an independent technology, which you can use in many applications.
I hope the confusion is cleared up right now; you can also check out other articles to get a better understanding.