One of the most common discussion topics that you may be surrounding is about blockchain and bitcoin. Another thing that emerges from it is whether the Blockchain and Bitcoin or the cryptocurrencies are different or are they the same? I’m going to say they’re different to keep it short. While Bitcoin was the first cryptocurrency to emerge in 2008; the underlying technology was Blockchain. Bitcoin was one of the first and should say, Blockchain’s most successful application since its inception. Furthermore, the confusion among blockchain and cryptocurrencies arose with its rise. Though both were initially used interchangeably, we now know that these two things are completely different. And I’ll highlight the difference between the two in this blog. So keep on reading to get a better understanding.
Part of the confusion about blockchain vs cryptocurrency is partly due to the use of the terms. The term blockchain developed from “chain of blocks” rather than being introduced by formal definition. Cryptocurrency is a kind of “cryptographic currency” portmanteau. But how distributed ledger technology is used is the key difference between these concepts.
HOW DO BITCOIN AND BLOCKCHAIN DIFFER?
Before going on to the in-depth analysis of the difference between cryptocurrencies (Bitcoin) and blockchain, let’s get a quick overview of this concept.
Bitcoin– Bitcoin was, as we all know, the first cryptocurrency or digital currency as we tell it was a sort of unregulated currency which came into the frame in 2008. It became popular, and we got the new currency type called the cryptocurrency. It is unregulated and free of regulations governing the control of currency. The goal behind this was to develop a system which would bypass the need for a third-party platform, decrease processing fees, and fasten transaction speed globally. All these processes required the establishment of a system or technology which could guarantee a secure way of transaction.
Blockchain formed the underlying technology that contributed to money transfer. This technology was a distributed, public and anonymous ledge on a peer-to-peer network. Blockchain had, in simple terms, all the features that were in sync with the need to create a safe, secure and transparent transaction system that is also anonymous and free of any regulation.
It was the core of the difference between the two. Here on, the other differences between blockchain and cryptocurrency will be highlighted.
Assets In Relation To Cryptocurrency
Cryptocurrency is only one of the blockchain’s applications. This technology uses much more than just cryptocurrencies. It can be used for a much wider asset range such as cars, properties, luxury products, food products, and so on. Everledger is an example of this. Blockchain is used to trace the origin of luxury goods in order to reduce fraud, document manipulation, and information.
In the case of Bitcoin, referring to the token as the technology may be right, but when dealing with other blockchain projects such as Ethereum, it is very different. The technology is called Ethereum in this case, but the native token is Ether, and transactions are paid in gas.
Banks Prefer Blockchain
Blockchain is more trustworthy than Bitcoin when it comes to choosing between the two. Compared to Bitcoin, blockchain has a cleaner reputation. Several reputable financial institutions such as JP Morgan, Goldman Sachs, Bank of America, have jointly expressed deep interest in introducing blockchain technology to streamline and strengthen the banking process. Banks can increase their transaction tendency by utilizing their permission blockchains.
The Blockchain Is Extremely Versatile
Blockchain is a technology with a multitude of features when it comes to versatility. On the other hand, bitcoin is less versatile. In addition, the use of Bitcoin in certain nations of the world is unregulated. On the other hand, blockchain finds multitudes of different field applications. Companies use this technology from healthcare to supply chain management to develop a more evolved and streamline the functioning process.
WHY IS BLOCKCHAIN GOING TO TRANSFORM THE GLOBAL ECONOMY?
Blockchain is dynamic technology when it comes to its future, and similar to the internet technology that has changed the world, blockchain is expected to do the same as well. More and more businesses are turning their attention to this technology now. Once entered in this distributed digital ledger by design, the information is unchangeable and unalterable. Hence, setting up better confidence in the business network. Not only does it save time, but it also makes the system more transparent and secure. It is the main reason for the popularity of Bitcoin and other cryptocurrencies. Furthermore, there were a lot of apprehensions surrounding Bitcoin with its growth. But, in the midst of all this Blockchain arose as a new avenue of growth and forward-looking technology that could solve all the problems related to the current technology we use.
HOW BLOCKCHAIN HAS BEEN USED MUCH MORE FURTHER THAN CRYPTOCURRENCY
Eventually, the blockchain is much more anti-fragile than cryptocurrencies; it enables us to work with everything in modernized ways that fit our present technological age. And everywhere it’s being seen. The first blockchain casino has been launched, and there are several more examples of thrilling applications for public ledger.
Walmart used Hyperledger, the blockchain platform developed by IBM, to decrease processes of food tracing from 6 days to mere seconds. In several other industries, the objective now is to use Hyperledger. A Gartner blockchain trend insight report claims that by 2030 blockchain will add $ 3.1 trillion worth of value to businesses. As illustrated by the Walmart example, the report cites supply chain as a good area for blockchain application and lists healthcare, education, manufacturing, energy, and government as other sectors that might profit.
Any industry requiring rapid verification of information – that is, every industry – will be able to run on public ledger technology. Even Starbucks wants to get into the action; Howard Schultz, chief executive of the coffee chain, said he wishes to use blockchain to “deepen the relationships of digital customers.”