If you’ve dived into the world of cryptocurrency, you must be aware of the terms like Bitcoin and Blockchain. And no, although they seem phonetically similar, they aren’t. There are some differences between the two and we will be highlighting those distinguishing features in this article. Crypto Genisus trading platform helps us to start with your bitcoin trading and start pulling your profits.
What is BlockChain?
To put it in more easy to understand layman terms, blockchain is a transparent, public ledger or database that is used to store records. This practically ensures that the information recorded on the database is shared through several machines so in fact decentralized.
The fact that makes blockchain revolutionary is its decentralization. Normally, documents are controlled by central authorities in case of centralized platforms. In the case of blockchain, this process is entirely open and transparent and the user agreement checks evidence. Since, there is no one point of attack for hackers to target, this makes blockchain incredibly easy.
Transparent and Distributed. Looks a lot like Bitcoin? Exactly ! Blockchain is the tech that underpins Bitcoin and it was specifically designed for Bitcoin itself. There would be no Bitcoin without Blockchain, that is why people use these terms interchangeably.
Although, it does not make both of them the same thing. Bitcoin is a digital currency that is decentralized via peer to peer e-payment system, where you can transfer bitcoins anonymously without interference of third-party authorities. Bitcoin uses Blockchain technology to trade this electronic currency, so blockchain is so much more than just Bitcoin.
Applications of Blockchain:
As we just mentioned, Bitcoin and Bloclchain are linked and people were not aware for a long time to realize the differences between the two. People are finally getting aware that Blockchain has wider applications beyond just cryptocurrency networks. You know how the internet revolutionized the world, blockchain is believed to revolutionize the business in a similar manner.
Execution of smart transactions: As we know that Blockchain is best for processing digital transactions, it is also useful for professionalizing digital relations, through smart automated contracts. Once the contract is completed, automated payments are released. Online process makes it easier to solve discrepancies.
Maintaining a shared hive-record: It is an ideal solution for maintaining records for a long term on a secure and transparent platform.All the parties can access these and securely.
Auditing the supply chain: It allows all the users to trace the records of ownership for goods back to the source.
Providing evidence for insurance: Insurance companies also use blockchains to provide evidence for insurance info. It will help government officials and insurers to verify how much the customer’s insurance covers.
To sum up what we covered today, Blockchain and Bitcoin are totally separate things. Bitcoin is a cryptocurrency whereas blockchain is a hive-mind database that has so many uses beyond just Bitcoin. Bitcoin favours towards anonymity and security of the user whereas Blockchain promotes transparency. So now you won’t have to no longer scratch your head finding the differences between the two. Let us know if there are still some questions unresolved in your mind.