Posted: 30.06.2021 | 08:06
Differences of Bitcoin and Blockchain
BLOCKCHAIN AND BITCOIN ARE NOT THE SAME THINGS. SO WHAT ARE THE FEATURES THAT SEPARATE THE TWO FROM THEM?
The terms Bitcoin and Blockchain are often used interchangeably and are confused intentionally or unknowingly. It should be said from the beginning that Bitcoin and Blockchain are different things, Bitcoin is an application of Blockchain technology.
You can think of it just like Facebook and the internet. Facebook is an application run over the internet and without the internet it is nothing. But the internet will continue to exist without Facebook. If Bitcoin is Facebook, Blockchain is the Internet. So they are not synonymous.
Bitcoin radically solved the double-spending problem in digital currencies that actually existed in 2009. This is the unique and non-replicable nature of Bitcoin, a concept co-created with Blockchain technology.
Blockchain, on which Bitcoin is transacted, is a database in which Bitcoin transactions can be recorded publicly, that is, by anyone, through a continuous decentralized distributed ledger. This database is transparent, publicly visible, highly secure, and independent of a central organization. All records are irreversible, unalterable and validated by autonomous miners on the network.
Since Bitcoin is the first and most important application area of Blockchain, it can be easily confused with each other. But people are now using Blockchain in different areas. Although blockchain was invented for a digital currency, today it is used in many areas such as smart contracts, tracking of goods and services in supply chains. In addition to public Blockchain networks such as Bitcoin, private Blockchain networks with their own rules provide convenience in the transfer of information, goods, services and value for businesses.
The use of blockchain in different applications is and will increase rapidly, but it is predicted that cryptocurrencies will remain as the main use.