Bitcoin Vs Blockchain | Difference Between Bitcoin and Blockchain
Welcome to Acadgild. In this video, we explain the difference between Bitcoin and Blockchain.
The two terms are often interchangeably used because they’re closely related, but they refer to two distinct things.
Bitcoin was the first ever application on blockchain. Perhaps, that is why so many people equate it with the technology – blockchain – that powers it.
Nonetheless, it is only one of the cryptocurrencies that blockchain powers. There are others like Ethereum, Litecoin, Monero, etc., which are also popular.
Even the term bitcoin has more than one meaning. Bitcoin – starting with a small ‘b’ – refers to bitcoin the token or the digital currency.
Whereas, Bitcoin – starting with a capital ‘B’ – refers to the blockchain network that maintains the public ledger for the cryptocurrency bitcoin – with the small ‘b’.
Bitcoin is an unregulated digital currency system that allows you to transfer assets across the globe using blockchain technology. In other words, it is a decentralized electronic payment system.
The technology was invented by the enigmatic Satoshi Nakamoto, whose identity has remained a secret since the technology’s invention in 2008.
Bitcoin is a highly secure, peer-to-peer network that uses a distributed ledger management system that is both transparent and secure.
It was invented with the vision to eliminate third-party intermediaries like governments and brokers from online transactions to create a system of economy and trade, which is undoubtedly one for the future.
Bitcoin is legitimate and immutable. It tackles issues of currency manipulation and loose banking systems and can even be exchanged for real money.
It is no wonder that the currency’s price has sky-rocketed in recent times.
Especially, since it borrows features from blockchain.
Blockchain is often likened to the internet of the 90s due to its revolutionary entry into the digital world.
It is an incorruptible system for recording transactions that is open, verifiable, and yet, secure.
It is used to trade cryptocurrencies like bitcoin and for other purposes like maintaining voting records or medical data.
Blockchain is secure because it does not record transactions at one central point, which can be easily hacked.
It uses a distributed system for verification that checks itself at regular intervals to maintain consensus on records.
It is described as the ‘internet of value’ because it eliminates all intermediaries in transactions and is used for purposes like – exchanging assets online through smart contracts, making peer-to-peer payments in sharing economy, crowdsourcing venture capital funds from a peer-to-peer economy, making regulations transparent in governance, and for verifying the history of things in supply chain auditing.
Blockchain is durable, robust, transparent and incorruptible. It is a revolutionary technology that promises to transform our digital future.
To learn more about bitcoin and blockchain technology subscribe to Acadgild’s youtube channel and blog. To become an expert on Blockchain, join our short-term course on the subject.
Thank you for watching and happy learning.
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