Bitcoin & Blockchain - Explained Difference | Homeesolution

Bitcoin vs Blockchain – Explained | Homeesolution

Is Bitcoin and Blockchain same or different?

Many people interpret blockchain to be same as a Bitcoin. The two are identical in many ways but also differentiate in many.

Specification

The reason behind it is that Bitcoin was the first crypto or digital currency that was developed on the blockchain platform. There was nothing else that was been operated on such an highly encrypted technology. Later there were many other altcoins cryptocurrencies that were operated and now the number is still increasing with new coins being introduced.

The Bitcoin and other altcoins are developed on the blockchain’s protocol, so the operation of the coins is designed in to the database of its respective blocks. Bitcoins are the funds that can be traded by means of blockchain transparently leaving footprints in ledgers of the database. Where as blockchain is a vast medium through which various numerical data can be operated securely other than transactions.

There are been records of Bitcoins been forked in the decentralized system creating BitcoinSV, Bitcoin Cash and Bitcoin Gold in the ledger with the purpose of scaling, the rules for the miners also differ for the forked currency but they still operate under the blockchain technology.


Objective of Bitcoin & Blockchain

The idea behind inventing Bitcoin on blockchain was by a pseudonym Satoshi Nakamoto, in 2008 when he realized that the banks and authorities had immense power in their hands to control the currency and its value, thus leading to recession and financial crisis.

The use of blockchain is being tested in many sectors for developing a system that can be secure than the existing method that are being used. Blockchain can be used in democratic voting purpose, banking transactions, health industries, education systems to name a few.

Bitcoin on the other hand was such a value which was not controlled by anyone and could be transferred to any person around the world via electronic means without having to pay high charges. Initially it was not accepted by the world but gradually as people started taking interest in the cryptocurrency when they understood the whole idea and how it worked. They thought that this would be the future of currency in the digital world.

Now Bitcoin has gained so much popularity that people from almost every country have invested in it. We have seen Bitcoin how it is volatile and how it has grown in past ten years. The behaviour of big banks and financial institutes towards the crypto has made it grow even more that no one could have thought. People are proudly saying these days that they hold bitcoin in their wallets.


Operation of Bitcoin & Blockchain

The Bitcoins operate on the proof of work protocol, which means every compter added in the chain network has to solve a math calculation to add a new block in the ledger which contains a specific value. The operators of these nodes are called as miners who are rewarded some Bitcoins for successfully mining new values in the blockchain.

Mining though is not an easy process, it requires high energy consuming computing systems had can handle the calculations and the chain operations, the frequency of mining is 1 in 6 trn ratio. Thus such a massive reward is offered for successful miners.

Adding more blocks to the system makes the blockchain more secure and difficult to be tampered. Thus people around the world are connecting with the technology for input of more cryptocurrenies than to hack the chain.

We hope you must have got a detailed idea of about the difference between Bitcoin & blockchain, their purpose and functioning.


More about this :

5 thoughts on “Bitcoin vs Blockchain – Explained | Homeesolution”

  1. Pingback: Blockchain - How secure is it? - Explored | Homeesolution

  2. Pingback: What is crypto interest account | Grow you assets using crypto interest account

  3. Pingback: Top 6 Best crypto wallet for 2022 - Safe hot & cold wallets | Homeesolution

  4. Pingback: Buy best car insurance USA 2021 - Do you need insurance | Homeesolutio

  5. Pingback: Blockchain Technology explained - You need to know | Homeesolution

Leave a Comment

Your email address will not be published. Required fields are marked *