One of the most common confusions among crypto novices is surely that of not being able to differentiate between the blockchain and the Bitcoin protocol.

A fairly effective mnemonic to remember the difference will always be the one you surely learned when you were younger:

“A square is a rectangle, BUT a rectangle is not always a square!” 

Your teachers have always told you this rule since your earliest childhood. Sorry to disappoint you, but in this article, we are not going to talk about geometry!

This means of memorization is also present when we approach the blockchain and Bitcoin.

“Bitcoin is a blockchain, BUT a blockchain is not always Bitcoin”  

The amalgam is almost ubiquitous among beginners, it’s good because most popular experts in the field often make the shortcut: Blockchain = Bitcoin.

How to differentiate Bitcoin and blockchain
  1. Blockchain, what is it exactly?
  2. How Bitcoin Uses Blockchain to Work
  3. But then, what are the other uses of Blockchain technology?
  4. Booster Shot: Blockchain VS Bitcoin

Blockchain, what is it exactly? 

Simply put, a blockchain is a huge file in which data is stored. To add the decentralized side that all crypto-enthusiasts love, this file must be shared on thousands or even millions of devices (computers, telephones, specialized equipment) connected to the Internet.

This decentralization is one of the things that makes blockchain so revolutionary.

Unlike a traditional, centralized database, where records are processed by a central administrator (a company or government, for example), the entire blockchain is transparent and the data it contains is verified by many users around the world.

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We talk about blockchain (or chain of blocks in French) because each new block of data is linked to its previous block. Without getting too technical, it is not possible to modify the data of an old block of the blockchain without everyone seeing it, during the verification of the signature (hash) of each block. This greatly limits the risk of corruption of the information that each block contains.

blockchain capital

Yeah, that’s bitcoin basically?

Yes and no ! Blockchain is the technology that derives from Bitcoin , it was developed especially for this device.

Thus, Bitcoin was the first known example of a blockchain in action. Without blockchain, there would be no Bitcoin, and vice versa.

Bitcoin is one of many possible uses of a blockchain.

And that, the developers of the huge ecosystem that is that of crypto currencies have understood it well.

How Bitcoin Uses Blockchain to Work

Bitcoin is a decentralized digital cryptocurrency , it is a peer-to-peer payment system, in which users can exchange value anonymously, without the intervention of a third party authority.

Bitcoin is just one example of a cryptocurrency; other crypto networks are also powered by blockchain technology.

If the transfer of value is common to all crypto currencies, it is not essential when creating a project.

Indeed, Blockchain technology is very useful for decentralized platform projects. This is also why its uses are multiple.

Since the Blockchain is a huge database, without specific permissions to access its information, it allows an almost infinite number of different applications.

But then, what are the other uses of Blockchain technology?

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Because Blockchain and Bitcoin are so inextricably linked, people have been slow to realize that Blockchain actually has much wider applications than cryptocurrency networks.

In fact, the potential of blockchain is so great that the overwhelming majority of crypto investors believe this technology will revolutionize the way we do business, just as the internet did before it.

Here are some examples of blockchain applications beyond bitcoin and other cryptocurrencies:

  1. Intelligent contracts or smart-contracts:

Thanks to Bitcoin, we already know that the blockchain is ideal for facilitating digital transactions, but it can also be used to authenticate digital contracts thanks to smart contracts.

With a smart contract , automatic payments can be released once the terms of the contract have been fulfilled, which promises to save time and help reduce discrepancies or resolve disputes.

  1. Maintain a shared and transparent registration system: 

Blockchain is the ideal solution for maintaining a record of transactions and activities over the long term. As each transaction or activity is visible to any user, it is quite possible to import notary data into a blockchain. As a result, everyone could know who owns a title deed, without asking a third party service.

  1. Supply chain audit: 

Blockchain allows users to trace ownership records of goods back to source. For example, the supermarket Carrefour has started using blockchain to track poultry from laying to the end customer. Anyone wishing to verify that their poultry are conflict-free will have a transparent and comprehensive record.

  1. Provide proof of insurance: 

Nationwide Insurance Company plans to use blockchain to provide proof of insurance information. The tool will help police officers, insurers and customers verify insurance coverage instantly, which should help speed up the claims process.

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Booster Shot: Blockchain VS Bitcoin

Bitcoin is a cryptocurrency, while blockchain is a distributed database.

Bitcoin is powered by blockchain technology, but blockchain has found many uses beyond Bitcoin.

Bitcoin promotes anonymity, while blockchain aims for transparency. To be applied in certain sectors (notably the banking sector), blockchain must meet strict know-your-customer rules.

Bitcoin allows currencies to be transferred between users, while blockchain can be used to transfer all sorts of things, including information or property rights.

“Bitcoin is a blockchain, BUT a blockchain is not always Bitcoin”  

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