Never forget this: Blockchain is not a cryptocurrency, let alone a Bitcoin. It is essentially a digital database that makes virtual currencies, such as Bitcoins, possible. In simple terms, Bitcoin is a digital currency that people can own, trade with, or invest in, something not possible with blockchain. This said blockchain technology is an application that powers the BTC system and supports all cryptocurrencies. Probably since BTC was the first-ever blockchain application, people often tend to use the terms interchangeably. But, both are fundamentally different.
Blockchain vs. Bitcoin: A Basic Comparison Chart
| Bitcoin | Blockchain |
| A cryptocurrency: enables to perform online transactions; no monetary value | A DPL (distributed public ledger): holds and catalogs all BTC transactions; has monetary value |
| Not regulated by a central authority | Regulated by a distributed computer network |
| A decentralized currency that functions as a conduit of exchange for secure transactions | Transfers all sorts of things (e.g., property ownership rights); not necessarily decentralized |
| Promotes anonymity | Promotes transparency; e.g., in the banking sector it has to satisfy the strict KYC and AML compliance requirements |
| Cannot function without blockchain | Use not limited to Bitcoins |
What Separates Blockchain from Bitcoins:
| Blockchain | Bitcoin | |
| Scope | 1. Is an ever-evolving technology 2. Many governments worldwide are launching and adopting blockchain to guarantee the security and transparency of their systems A good example is China. The Chinese government is working toward integrating blockchain technology but does not want cryptocurrency in the economy. | 1. Have very limited scope; some governments have embraced it, while others have either restricted or banned it 2. Never an official substitute for a state’s legal tender |
| Strategy | 1. Reduces influencers’ cost 2. Reduces cross-border transaction time 3. Less adaptable | 1. Highly adaptable and hence, caters to various industries |
| Cybersecurity and Tracking | 1. Nearly impossible since it is a non-regulated system 2. Lacks information about trading parties and exposes investors to considerable risks 3. Around $72 billion worth of illegal transactions get routed via BTCs per year | 1. Scalable solution for tracking and authenticating orders 2. Tracking through a digital ledger |
| Cost efficiency | 1. Higher fee for fast (high-priority) service or lower fee for a slow (low- priority) service | 1. Reduced costs in several verticals of a variety of industries that handle larger databases |
Blockchain Uses Per Industry
Blockchain applications are extensive. Besides the ones listed below, the technology is useful is weapons tracking, inheritances, food safety, charity, and digital voting.
Financial Services
- Transactions and trade
- Ownership proof and insurance
- P2P exchange
- Example: Barclays floated a spate of blockchain initiatives to track financial exchanges and combat fraud
Automotive and Mobility Services
- Ownership proof and insurance
- Smart contracts
- Example: Arcade City, Uber’s rival, is planning to move car hiring and ride-sharing onto the blockchain
Manufacturing Services
- Authenticity proof
- Supply chain
- Example: Blockverify aims to eliminate counterfeiting in luxury goods and pharmaceutical industries
Life Sciences
- Regulatory compliance
- Product safety
- Example: SimplyVital Health’s two healthcare-related blockchain systems: ConnectingCare to track patients’ progress postdischarge and Health Nexus to provide a decentralized blockchain patient medical records
Media, Entertainment, and Telecom Services
- Digital identity
- P2P exchange and transactions
- Example: BerkleeICE’s Open Music Initiative, which includes such big names as Netflix and Sony, aims to improve the transactions of royalties and music rights remuneration for musicians and artist-entrepreneurs
Public Sector Services
- Authenticity and ownership proof
- Document verification
- Example: Ubiquity is aiming to create a blockchain framework to track the legal process in real estate
Energy and Utility
- Accounting and auditing
- Product safety
- Example: Brooklyn Microgrid is planning a blockchain system that enables trading of energy between consumers in a locality
Applications in Government
UK
- Govcoin: Records and regulates benefit payments
South Korea
- Samsung initiative: Blockchain solutions to be integrated into transport and public safety systems
Dubai
- A representatives committee, comprising members from 30 state departments, is tapping blockchain potential across shipping, health, and diamond industries
Blockchain Trumps
Blockchain and Bitcoins are detailed and extensive concepts, and unique in their own right. In today’s digital age, with millions of cross-border transactions being conducted every day, people could make use of BTCs and blockchain to make their lives a whole lot easier. In a final comparison, blockchain technology does edge out Bitcoins greatly owing to its various applications. You can count on Bitcoin for a thing for investment purposes. You can make your investment in Bitcoin through an innovative platform called Bitcoin Code. Check Bitcoin Code Review to know further more about it.
