The Difference Between Blockchain and Bitcoin

Many people mistakenly believe that Blockchain is the only technology that creates Bitcoin. However, this is a misunderstanding because Bitcoin is created by a series of different cryptographic technologies combined with Blockchain. And Blockchain technology is just one of Bitcoin's foundational technologies.

I. Overview of Bitcoin and Blockchain

Bitcoin is a cryptocurrency created with the purpose of replacing Fiat money for payment transactions. Bitcoin is just a relatively successful application of Blockchain, and thanks to Bitcoin, more people have become aware of Blockchain.

Blockchain is not only used for storing and transferring financial transactions in general but can also be applied in many other fields. Today, there are increasingly diverse systems built on Blockchain technology across various fields such as digital identification, social networks, elections, online data storage, decentralized applications, etc. It can be said that systems built on the Blockchain platform are very promising and are being exploited by many companies as well as governments.

II. The Difference Between Bitcoin and Blockchain

The core point to distinguish between Bitcoin and Blockchain is:

• Blockchain is similar to a database; it is a form of storing records of value and transactions. Almost any information can be stored on Blockchain.
• Transactions on the Blockchain eliminate intermediaries and allow people to directly transact with each other, replacing the need for a trusted third party in transactions.
• Many countries in the world now have banking systems and legal systems in transaction record-keeping that are not secure, causing many to be distrustful. In such cases, Blockchain can be very useful because it can provide reliability and assurance for people when they transact with each other.
• Bitcoin is a system built on the Blockchain platform. Bitcoin was primarily created for payment transactions, while Blockchain is a technology with broad applicability and great potential in the future.

Therefore, this article has presented the differences between Bitcoin and Blockchain, hoping it will be useful for you.