Blockchain is the technology that underpins Bitcoin and it was developed specifically for Bitcoin. So, Bitcoin was the first example of blockchain in action and without blockchain, there would be no Bitcoin. That’s why the two names are so often used interchangeably. But that doesn’t mean that blockchain and Bitcoin are the same thing. Jun 16, · Bitcoin operates on a public blockchain ledger that supports a digital currency used to facilitate payments for goods and services. Bitcoin, the network, is primarily known for its bitcoin. However, it encourages citizens to invest more time and resources in Blockchain technology since it can be applied in various industries. The past few weeks had seen the upsurge of Bitcoin price, as it moved above its previous all-time high achieved in when it reached $20, per Bitcoin. The same story goes for other cryptocurrencies.
Bitcoin same as blockchainChina Stance on Crypto Remains The Same; Blockchain, Not Bitcoin
Thus, Blockchain is not in itself Bitcoin but is the basis on which Bitcoin has been created. We could think of Blockchain as a chain of blocks, interlinked, which would hold information, data, other relevant stuff, and they would be bundled together. These blocks would be chained and used whenever required. Bitcoin is a cryptocurrency that is used by a lot of people to make safe transactions. This has all to do with the use of tokens, that depends on the Blockchain technology.
This is thus a tool of the Blockchain technology that has been discussed so far. Buying, selling, investing, monetary transactions and more can be easily conducted with the help of Blockchain technology tool — which is the Cryptocurrency. Comprehending the differences between cryptocurrency and blockchain, and how they work in unison:.
The Blockchain platform helps to bring the cryptocurrencies in vision. Since it is a dispersed network that controls the network, this platform helps to transact the money and helps to transfer valuable information and data.
These Cryptocurrencies are the tokens which are used within all of these networks, that create value. These act as the utility or tools, and they are used to digitalize the value of an asset. Thus, Blockchain is the basis of any application, and cryptocurrencies are only the parts of this large ecosystem. A cryptocurrency may be needed to access the Blockchain technology — hence they are interdependent.
But it is important to notice that without the presence of Blockchain, it would be impossible to transact the data. Of course, now that we have gone through the intricate differences, we can point out that the above statement is false.
It is more of a set and subset concept. Bitcoin and Blockchain are closely related, but they are in no way the same. There was a time that Bitcoin coding was left out in the open, and Blockchain was also present in the same wrapper — so both are interlinked. Bitcoin is an unregulated cryptocurrency that was invented by Satoshi Nakamoto in the year of The reason for its existence was to dismiss off the government rules that are associated with the monetary transactions.
There was a desperate need for very secure transactions, which was achieved through the Blockchain technology. This technology involved very simple principles — a ledger was distributed that was connected from peer to peer, and the network was open, public and anonymous in nature. This helped in secure transactions over the web. Thus the Bitcoin blockchain was born, which had nothing but a simple storage database of Bitcoin transaction records.
This has no regulating authority present — thus the participants must agree upon the currency and the transactions before they can be recorded. The process of this consensus is achieved by the process of mining. Right after there are Bitcoin transactions, the miners immediately confirm the legitimacy of the transactions through some complex equations. A proof of work is generated thereafter. This should provide sufficient data as to the transaction really happened.
For every safe and valid transaction, the users must have proof of work present. This is important to all the users and is compulsory. Thus, the transaction records now cannot be tampered with, or changed, because now they are integrated into the blockchain records. It is almost impossible to play up with the blockchain records because it is dispersed in nature.
Bitcoin remains a truly public system that is not owned by any single individual, authority, or government. XRP Ledger. Bitcoin Wiki. Accessed June 18, University of Waterloo. Coin Telegraph. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages.
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Blockchain Explained A guide to help you understand what blockchain is and how it can be used by industries. Bitcoin Mining Definition Breaking down everything you need to know about Bitcoin mining, from blockchain and block rewards to Proof-of-Work and mining pools.