7 Differences Between Blockchain and Bitcoin that You must Know in 2022

An Overview of Blockchain

Before going in dept to discuss their difference, you must know about them properly. Right?

An Overview of Bitcoin

Bitcoin is one of the cryptocurrencies that are used to transact money online without thinking about notes, cash, or any piece of paper. But what is cryptocurrency? The term cryptocurrency advanced from the expressions cryptography and currency. Cryptocurrency is decentralized and is distributed publically so that anyone can buy it and use it.

Differences Between Bitcoin and Blockchain

They both are going to become an extremely important part of our lives. But both in a different way. Because they have seven differences that are enough to call two terms different. Right? So, start with the first one:

1. Their Nature

By nature, they both are extremely different terms from each other. Blockchain is a database in which information can be secured, and that information can be anything, even it can be bitcoin. At the same time, bitcoin is a digital currency that can also be called a virtual tool that can be used in blockchain transactions.

2. Worth or Value

Even though blockchain is a quite expensive technology that you should only use if you want to store or save a piece of extremely important information like money, it does not have any monetary value. Nevertheless, bitcoin has a significant monetary value. Even it is quite expensive that you can only buy one bitcoin if you have a good number of bucks (millions).

3. Mechanism

The working mechanism of blockchain is completely based on transparency. But bitcoin works on privacy.

4. Applications

They both are extremely different when we talk about their uses and applications. For example, bitcoin is used as currency for payments, storage of money, and even investment. It has a quite prominent name in many financial markets. But blockchain is a technology that works like a vehicle to drive transactions of different data in which bitcoin or crypto comes first.

5. Portability

Although both are digital and digital stuff can be transferred from one computer or server to another, blokchcain is slightly different. Blockchain is not portable, but you can transfer bitcoin from an account to another, just like any other currency.

6. Significance

The importance of both innovations is also quite different from each other. Blockchain is extremely beneficial for us because we live in a digital world. Blockchain helps you securely trace and secure any transaction in any piece of information.

7. Dependence

The whole working of bitcoin is dependant on blockchain. In the past, before blockchain, bitcoin was extremely slow; blockchain has made it six times faster. But when we talk about blockchain, it is never dependant on bitcoin except when it is about to launch.

Distributed and Decentralized? Aren’t They Same?

This is one of the most regularly asked questions about the relation between bitcoin and blockchain. Are you also ready to believe that bitcoin and blockchain are the same as many other people because they have two terms in common? If you think like this, then we have to tell you that two common things can’t determine that two diverse things are or can be the same.

Final Words

Do you still think that blockchain and bitcoin are same or your concept is now clear? Please let us know!

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