The realm of cryptocurrency is filled with rich terminologies that a beginner might find tough at times. Most people get confused about what is Blockchain and what is Bitcoin during their initial days while stepping into the crypto world and making the mistake of considering the two as one thing. Although taking these two as one single thing will not make an impact on their trading and staking value, a coherent idea about these two terms can help in making a wiser decision from a business and trading perspective.
The cryptocurrency world was different in the beginning. Initially, it was not a popular platform because of its uncertain nature and the risk of privacy breaches. However, since the introduction of the Bitcoin, the digital money market got introduced in a new way with the invention of the most robust security system, the Blockchain protocol. And with the help of these two, the crypto world has been reintroduced to the physical world.
The decentralization system with the Blockchain mechanism created a revolution that changed the definition of the digital transaction service that the crypto users used to know before.
But to understand the differences between the Blockchain and Bitcoin, one first needs to have a better knowledge of these two things. Here, we have discussed the two things separately in a straightforward way so that anyone with lesser knowledge about the crypto world can get a clear idea of it. So let’s dive in.
What Is Blockchain?
In simple terms, Blockchain is a “distributed database,” a shared ledger that works as a network and holds records of all the data regarding transactions, asset tracking, etc. So any business institution or organization that is using Blockchain technology for keeping records and tracking data can be called a Blockchain network. The Blockchain network is immutable, so once written and put on; the ledger in Blockchain networks cannot be edited or removed.
So, if you are now wondering how Blockchain works, the Blockchain network allows more than one user. Thus, multiple users can access the network simultaneously, make transactions, transfer data, and pool necessary resources. And all these can be done without the risk of any security breaches as the Blockchain network restricts tampering activities with its “proof of work” and “proof of stake” systems.
All the uploaded data on a Blockchain system does not get stored in a single computer, instead is distributed to a network of computers, and thus anyone can access any data on this network. And as attacking or tracking data for hacking or scamming among so many computers is next to impossible, this widely distributed nature decentralized the system and boosted the system with a secure way of making transactions. A few Blockchain example include the Ethereum network, Bitcoin network, etc.
What Are The Advantages Of Blockchain?
The most significant advantages of Blockchain are as follows –
- It offers a decentralized Blockchain network.
- Strong security and privacy protection.
- Comparatively low transaction cost.
- It provides a fast transaction speed and unlimited transactions.
- Open to all, and traceable with a decentralized system, making the network trustable.
- Comes with an immutable feature so one cannot tamper with any data.
What Is Bitcoin?
Like any other cryptocurrencies in the digital market, Bitcoin is also a type of cryptocurrency. But what made it different from others is its decentralized Blockchain feature. The Bitcoin cryptocurrency is also popularly addressed as BTC. Through Bitcoin, one can make payments, receive payments, or trade and stake their crypto assets in the crypto platforms for higher profit returns.
Being one of the major cryptocurrencies in the market, Bitcoin is available in every major and minor crypto exchange and can be purchased with other currencies as well. Now, if one asks what Blockchain is Bitcoin on, well, Bitcoin has its Blockchain, named the Bitcoin Blockchain network.
What Are The Advantages Of Bitcoin?
Some of the top advantages of Bitcoin as mentioned below –
- Bitcoin offers anonymity, helping one keep their privacy secured.
- It charges a minimum cost in comparison to other platforms.
- It offers its users a decentralization facility.
- The market value of Bitcoin is considerably higher than other cryptocurrencies.
- As there are no restrictions in mining, Bitcoin is entirely safe from inflation risk.
Is Bitcoin and Blockchain are same?
The Blockchain is the platform where cryptocurrencies like Bitcoin are used for transactions. So, the two things are not the same. The difference between Bitcoin and Blockchain is described below –
- As said before, Bitcoin is a crypto coin (cryptocurrency), and Blockchain is a distributed database platform.
- Bitcoin is supported by the Blockchain technology protocol and cannot exist without it. In comparison, the Blockchain can exist without Bitcoin and performs several other jobs.
- One can avail of the anonymity features in the Bitcoin system, and on the Blockchain, one can get the transparency feature.
- Bitcoin is only about transferring “currency” between two users, but using a Blockchain, one can transfer a wide range of things, such as data, information, property rights, etc.
- Bitcoin allows a simplified transactional path where no one has to follow government regulations. On the other hand, Blockchain offers a cost-effective, secure, and “peer-to-peer” transactional environment.
- Bitcoin is a limited innovation; thus, there is little chance to embrace new things. But Blockchain is welcoming new changes now and then, and thus the future of Blockchain can be promising.
- The flexibility of Bitcoin is limited to virtual currency transactions only, marking its usage scopes. At the same time, Blockchain is gradually becoming an ideal platform for doing business for each type of industry.
Can Bitcoin Exist Without Blockchain?
Before learning whether Bitcoin can exist without Blockchain, one must first understand what is a Blockchain in crypto.
The Blockchain is the platform where crypto transactions happen. For all types of crypto transactions, such as crypto coins, tokens, rewards, or any crypto assets transfer, staking, trading, sending, receiving, etc., for performing each one of these, the crypto user needs a platform that will protect the data and provide a secure and transparent path for completing the transaction, and Blockchain is one such platform.
Now back to whether Bitcoin would exist without Blockchain, well, no. Bitcoin is a major cryptocurrency and for making Bitcoin transactions, a Blockchain platform is always a must.
Why Is Blockchain Important For Gamblers?
Blockchain terms make it clear and secure to record each transaction’s data. So in an industry like gambling, the immutable Blockchain protocol provides just what they would need for a transparent gambling process. Some other prominent reasons are –
- Security is one of the main reasons that the gambling industry is turning to the Blockchain network. As the network records all data, hackers can’t steal the assets or funds of any player.
- It provides users with a unique experience in gaming. As all the data and funds are secured with the Blockchain system, players can gamble without fear of getting robbed by any stranger and enjoy the whole game. Besides, the “Blockchain casino” world is full of new features and content that the players can avail of and bet big.
Apart from these, anonymity, cost-effectiveness, player protection, and audience expansion are other essential reasons that make Blockchain important for gamblers.
What Is The Future Of Blockchain And Bitcoin?
Blockchain technology is always coming up with new features and, thus, is still in the process of upgrading. And so, in the future, it is no wonder if the Blockchain system gets recognition and acceptance to be applied even in government sectors worldwide, as the beginning has already started in some countries like China and Sri Lanka.
The features that the private Ganache Blockchain offers its users will help them make, develop, and test their own (personal) Blockchain network for utilizing smart contracts. It will help evolve the Bitcoin network as a cryptocurrency and push its market value upwards more than ever.
Now that you know everything about Blockchain vs Bitcoin and how the two things play a crucial role in securing all the data and running a fast service in the digital money market, you can work on the crypto platforms more efficiently. The crypto world got worldwide acceptance because of this Blockchain technology, which provides strong security protection, unlike the previous security system where data breaches and asset hacking were much more effortless.
But with Blockchain technology and the decentralization system, it became next to impossible for hackers to breach the crypto transactional data. And Bitcoin contributed a lot in making this crypto platform a famous trading point as it was the first significant cryptocurrency to use the Blockchain decentralization protocol.