What’s the Difference Between Blockchain and Bitcoin?

It seems there isn’t anyone these days who hasn’t at least heard of Bitcoin. If you’re familiar with the cryptocurrency, though, you’ve probably also heard some of the terms that surround it like “blockchain,” “decentralised,” or even “wallet.” Understanding exactly what Bitcoin is, though, and how these other terms apply to it is the only way to make sense of what can sometimes be a confusing market. You may be left wondering blockchain vs. Bitcoin vs. other cryptocurrencies? You may also wonder “are Bitcoin and blockchain the same?” It’s important to understand every piece of the debate. Let’s start at the most basic point, though, with the idea of cryptocurrency.

What Is Cryptocurrency?

Cryptocurrency is a digital asset. Think of it a bit like money that exists only online. There’s no paper form of cryptocurrency. More importantly, there’s no central authority issuing cryptocurrency. Instead, it’s considered to be completely decentralised. No government issues it, nor does any organisation. It works through something called digital ledger technology, which is also known as a blockchain. What’s the difference between blockchain and cryptocurrency? Quite a bit, actually. The blockchain is like a public record of that cryptocurrency – when it was created, when ownership was transferred, and the like.

Learning what’s the difference between blockchain and cryptocurrency relies on a better understanding of this technology. Blockchain really is like the engine that powers every cryptocurrency market. It’s just a database of information that’s stored on a massive computer system that is scattered across the world. Still a little shaky? Let’s break things down one step further. A database is just a big group of information stored online. That information, which you could also call data, is stored in a table, like you might see on a spreadsheet. The difference here is that a spreadsheet is designed for you, or you and your colleagues, to store information related to your business. In that way, blockchain is like a big spreadsheet with lots of information on it. It’s shared between many users, and it can be accessed quickly by all of them at once. The blockchain technology that powers cryptocurrency is stored on servers all over the world, often thousands of them. To power something this big, you have to have lots of storage and computing ability, so that’s why many people have to be involved.

On the blockchain for any cryptocurrency, data is structured together in groups that are called blocks. Each block holds a group of information, and when that block is full, a new block is “chained” on with additional information. As each block is added, a timestamp is placed on it, so you essentially get a giant timeline of information about everything that happened within a given cryptocurrency.  

Many ask “does Bitcoin use blockchain?” Every cryptocurrency uses this method to help store and manage the information about the currency including when the new currency was released and when it changes hands. Understanding how does Bitcoin use blockchain is a bit more complicated, though. A transaction works something like this when you’re dealing with blockchain technology. The transaction is actually placed in the system, then it’s sent to lots of computers across the world, all of which are connected by a peer-to-peer network. Those computers help verify the transaction, and once many transactions are confirmed together, they make up a single block. That block is chained to the group of transactions that happened previously. Once the block is recorded, it cannot be reversed, so there’s no way to make changes.

Sound dangerous? It’s really not. Because it’s completely decentralised, it’s immune to any real attacks. Add that to the level of encryption technology, and you have an equation that just can’t be attacked from any real angle.

Bitcoin and Blockchain: Where Bitcoin Comes into the Picture

There are lots of questions surrounding where Bitcoin actually fits with this idea. Some ask “How are Bitcoin and blockchain-related.” Others want to know “Are blockchain and Bitcoin the same?” It’s important to note that blockchain is not Bitcoin! Bitcoin is a cryptocurrency, and it is powered by blockchain technology. There’s no blockchain vs. Bitcoin problem. Bitcoin and blockchain work together. It’s important to note that blockchain really isn’t the same as Bitcoin. The idea of blockchain vs. Bitcoin doesn’t really exist. Instead, blockchain and Bitcoin technology working together has created the most powerful cryptocurrency today. Does Bitcoin use blockchain? Absolutely, but because many people don’t understand how cryptocurrency really works, there are lots of questions and debates around this type of currency and the idea of blockchain as a whole.

In fact, there really was never a blockchain vs. Bitcoin debate because blockchain is not Bitcoin. Bitcoin was originally invented in 2008. Bitcoin and blockchain have been working together since the beginning because blockchain technology was being used by it. It wasn’t actually used until 2009. No one knows exactly who invented Bitcoin. The name behind the cryptocurrency is Satoshi Nakamoto, but it’s pretty unclear as to whether that’s one person or a group of people who created this currency.

Blockchain and Bitcoin work like any other cryptocurrency does today. It allows you to buy goods and services (or transfer assets) through digital means. To get involved in Bitcoin, though, you have to initially sign up for a wallet service. There are many different kinds of wallets, so you’ll have to choose the right one to meet your needs. Just keep in mind that some are more complex than others, some are safer than others, and some just don’t even deserve your attention, so do your research well!

So, Is Blockchain Same as Bitcoin?

The simple answer to “is blockchain same as Bitcoin” is no, blockchain is not Bitcoin. They have to work together to do what they can. Blockchain powers Bitcoin, but it can stand on its own without Bitcoin to power other cryptocurrencies that are available today. In fact, blockchain can be used to power all kinds of computing problems.

Bitcoin Vs. Crypto Options – Which One is Best?

Bitcoin is far from the only cryptocurrency you can invest in. The Bitcoin vs. crypto options debate is currently raging, and deciding which one might be right for you can be difficult. Do your research, though, before you invest. Just like Bitcoin and blockchain technology go hand in hand, all cryptocurrencies are powered by this technology, so you don’t have to worry about that, but not all of them have the same advantages and disadvantages, so make sure you know about each one before you make an investment in the Bitcoin vs. crypto options debate.

Now that you know there is no blockchain vs. Bitcoin vs. other cryptocurrency debate, you can move forward and decide whether investing in the cryptocurrency market as a whole is right for you. The blockchain technology used in Bitcoins is well worth understanding. The blockchain technology used in Bitcoins can help you know more about this essential cryptocurrency and help you make the right investment decisions. After all, the blockchain technology used in Bitcoins is used in many investments today, and knowing more about exactly how it works is the key to making a great investment decision for your portfolio.