Bitcoin and Blockchain, these are two words that are used interchangeably and they may pose a bit of confusion. If you’re wondering like many others out there if there’s a difference between Bitcoin and Blockchain, then the answer is yes. But we’re sure you’re not just here for a one letter worded response and that’s why we’ve outlined some distinguishing features between both.
Differences Between Bitcoin and Blockchain
Some differences between Bitcoin and Blockchain include:
Bitcoin Enables Payments to be Made:
Bitcoin is a cryptocurrency or digital currency which you can use to send and receive payments. If you want to pay for a car,property or trade on cryptocurrency exchanges, you need to access Bitcoin in your online or offline wallet. Therefore, Bitcoin is a medium of exchange that gets you closer to the item you wish to purchase even if its in another country or continent.
Blockchain Facilitates Processing of Payments:
Blockchain, on the other hand, is the technology that enables you to use Bitcoin. Think of it this way, without your bank serving as a middleman between you and a recipient, there might be no way to process your payment and credit or debit your funds.
In the same vein, your ability to send and receive these payments is a capability provided by the blockchain. What the blockchain actually does, is to transfer the ownership of your asset to someone else. But this time around, there is no middleman which makes it faster and reduces the transaction fees.
Blockchain Stores All Bitcoin Transactions Ever Made:
The blockchain is also known as a distributed ledger technology since it is a database that holds a record of all Bitcoin transactions that have taken place since the creation of the cryptocurrency. The blockchain has an immutable feature which prevents its stored content from being changed or manipulated. As a result, confirmed Bitcoin transactions cannot be reversed since there is no way of tampering with the record.
Blockchain Gives Bitcoin its Decentralized Feature:
You may have heard of statements such as ‘Bitcoin is decentralized‘, ‘cryptocurrencies are decentralized’ and the likes. But that’s just a more complex way of saying the blockchain which is used to store transaction records cannot be centrally controlled. Noone has sole control or authority over it and as such, the same data does not change which brings about data integrity.
Data Other Than Bitcoin Transaction Can be Stored on Blockchain
The Blockchain’s features such as traceability and immutability has attracted organizations to it. Coupled with these features and the ability to store content on the distributed ledger means that not only Bitcoin transactions can be held in it. Other assets such as real estate and bonds as well as Information pertaining to an organization can be stored in it.
That being the case, Bitcoin only shows you one of the ways blockchain can be used because the technology has several use cases. For instance, in the tracking the supplychain of farm goods, drugs, hardware materials etc. The same can be saud about storing data pertaining to students results and certificates. In storing electoral votes which will enable citizens at home or abroad cast their votes. The list goes on and on.