If you treat Bitcoin and the technology called Blockchain the same, think again. We understand the confusion as these two terms are often used together and thus even used interchangeably.
However, the fact is these are two opposite and different terminologies. They may be closely linked and related but do not remain in the same terms. When we see Bitcoin coming, the currencies were developed using Blockchain technology. They were kept open source in the market, and it was made possible only due to the possibility of Blockchain.
These are inadvertently used terms that never meant Blockchain. Blockchain did exist before Bitcoin, and the only difference was that the technology came into light only when virtual money went into the market. Similarly, the difference between the two also exists in the market and business terms.
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How BTC and Blockchain seemed to be different?
Bitcoin is an unregulated digital currency, and it is among the first crypto in 2009 by Satoshi Nakamoto. We know it as the first crypto in the world, and the intention of bringing out the crypto was to bypass the fiat currency and the issues that come into the market in the form of recession and other things.
The idea somewhere helped people but only to a small extent. Online transactions help in getting rid of third-party payment ideas intermediaries. Also, it is seen as accomplishing that helps in making money in itself, and thus, it can help in making too many transactions with the help of crypto.
The transactions carried out with the help of transactions are easily stored, and these are transferred using some distributed ledger over any P2P network that remains open and unknown. Blockchain is also underpinning technology that helps maintain the BTC transaction ledger.
The working of Bitcoin and Blockchain
Bitcoin and Blockchain are linked in a simple form, like a ledger or database that comprises BTC transaction records. However, the database is further distributed over the P2P network and comes without any central authority and network participants. These should agree on the validity of several transactions before these are jotted down.
There is an agreement known as consensus that helps in giving the network participants that should agree while things are recorded. It is an agreement that comes as a consensus, and further, it is known as mining. As you see people using Bitcoin, the miners have to solve several intense and complex equations only to validate the transaction.
With mining, we know a PoW that helps meet specific requirements that can help complete the transaction. With the help of mining, we see PoW needs to meet certain conditions developed in the transaction. The PoW will work like a data piece, which is expensive, time-consuming, and further validated by many others.
It also helps in considering the help of valid transactions over Blockchain; thus, the individual record comes for the consensus. With this decision, you can find transactions recorded correctly without tampering with the changed things added with the help of Blockchain technology.
Blockchain for Business – understanding the difference
Blockchain technology is now supporting Bitcoin, which is developed particularly for crypto. That is why it took a while to realize that technology helps adapt to many more areas.
Technology is also helped in changing the stringent norms that business often needs.
There are three key attributes that separate Bitcoin Blockchain from the technology that is designed for business:
- The first thing you need to check is the assets over cryptocurrency, and it is free from the token inside the ledger developed with Blockchain. It will also broaden stable investments, including bonds, securities and private equity.
- The next thing is identity over your anonymity. We see BTC thriving owing to these factors. However, anyone looking for a Bitcoin ledger is expected to have different transactions that keep happening. Still, the account information is working with the vague sequence of many more numbers. On the contrary, we see businesses having KYC and AML compliances that help in playing safe by opting for online transactions.
- Selective endorsement is the last thing that comes into this when we look at PoW. You can see a consensus with Blockchain for businesses that are not gained through mining but comes with the process of chosen endorsement. It is also the same thing that further validates the transaction.