Is Blockchain More Than Just Bitcoin: Here Is What Experts Say

Is Blockchain More Than Just Bitcoin: Here Is What Experts Say

13:15 25 January 2021

If you have been using both terms interchangeably, you are not alkaline. Most of us out there probably think Bitcoin and Blockchain are probably different names for the same thing.

 

There are people who think that both Bitcoin and Blockchain are the same entity. Perhaps this is because they are related technologically. Blockchain is the technology that uses the public ledger principle to store and shrew data and information. However, Bitcoin is the first product born with Blockchain technology.

 

What Is Blockchain?

 

It is a decentralized network that performs on the public ledger principle. That means, once a piece of information is encrypted on the network, it cannot be changed. The Blockchain network information cannot be copied, but every member of the network can view it. Putting it simply, it is a computing file used for storing data.

 

The very essence of decentralization makes Blockchain transformative. Unlike the traditional network, where a single administrator authenticates the data, the entire network is transparent in the Blockchain network. The data is authenticated with the help of consensus.

 

The best thing about Blockchain is that despite its transparent nature, it is highly secure, which makes it a perfect network to make financial transactions and share information.

 

What Is Bitcoin?

 

Bitcoin is the first product of Blockchain technology. In fact, you can even consider that Blockchain technology came to existence just to support the existence of the Cryptocurrencies Bitcoin.

 

The very nature of the interdependence between Bitcoin and Blockchain technology confuses the people thinking them to be the same. However, now you know they are not the same.

 

Bitcoin is a decentralized digital currency and a peer-to-peer electronic payment system that allows the users to transfer Bitcoin anonymously without the interference of the intermediaries. Bitcoin is just one product of the Blockchain network. As of now, there are more than thousands of Cryptocurrencies in the market, and all are powered by Blockchain technology.

 

So, one thing has become certain that although Bitcoin uses Blockchain for making transactions, Blockchain is more than just supporting technology.

 

Looking at Wider Applications of Blockchain

 

Just because the Bitcoin Blockchain technology concept is so intertwined, it takes more time for the people to understand that Blockchain has a wider range of applications beyond the Cryptocurrency network.

 

In fact, the Blockchain's potential is limitless to the point where experts believe that it holds the revolutionary feature inside itself. Some experts even believe that it might even become the core technology of the world.

 

Here are just a few examples that show you just how broader perspective Blockchain brings into the industry.

 

1. Executing Smart Contracts

 

Thanks to Bitcoin, we were able to understand the importance of the Blockchain while making financial transactions. With the secure financial transaction, we become certain that Blockchain technology can be formalized to maintain a healthy digital relationship through smart contracts.

 

2. Transparent System of Record

 

Blockchain technology is ideal for record-keeping all the data and information. The best part is that it can be used as a long-term solution as well.

 

3. Auditing Supply Chain

 

Blockchain tracks every aspect of products. Tatar means it can easily track the ownership of the product way back to its sources.

 

4. Proof of Insurance

 

The national insurance companies also seek blockchain technology to offer proof-of-insurance information. This instrument will help everyone to track the longevity of any insurance policy.

 

A Quick Summary on Key Differences

 

To finish it up, let’s review the things we have covered in this article.

 

• Bitcoin is Cryptocurrency. While Blockchain is a Distributed network.
  
  
• Bitcoin is supported by Blockchain technology. Whereas, Blockchain has found several ways beyond Cryptocurrencies.
  
  
• Bitcoin is all about anonymity. At the same time, Blockchain is all about transparency.
  
  
• Bitcoin helps the user transfer money between two users. While Blockchain can be used to transfer data, information, anything you can think of.

 

Although Blockchain is considered a safe network, we can come across many people who can break Blockchain security. To know more visit bitql