Though bitcoin was the topic in town across Vietnam since the end of 2017, many people are still confusing of terms “bitcoin”, “cryptocurrency” and “blockchain” at the present time.
1. Bitcoin & Blockchain: Same entity?
- Nope. Blockchain is the technology underpinnings of Bitcoin.
2. Blockchain vs. Bitcoin — Some features in common
Blockchain is the technology underpinnings of Bitcoin. Hence, there are some features in common between them.
- The validation system is designed to be immutable. That is to say, all transactions old and new are preserved forever with no ability to delete.
- Anyone on the network can browse via a designated website and see the ledger. This provides a way for all participants to have an up-to-date ledger that reflects the most recent transactions or changes.
- In this way, blockchain establishes trust, which as we shall see facilitates transactions and brings many cost-saving efficiencies to all types of transactional interactions.
3. Blockchain vs. Bitcoin — Different in definition
A blockchain is a distributed ledger of transactions implemented as data batched into blocks that use cryptographic validation to link the blocks together.
One of Blockchain implementations is cryptocurrency. A cryptocurrency is essentially a digital form of currency. Unlike fiat currency, there is no central governing body. They are created, operated, and exchanged only on the Internet. We can use to buy anything on the Internet, like for dollars, euros or other currencies, and it also has been traded on different stock exchanges. Nobody controls it, the currency issue occurs through the work of millions of computers around the world using a program for calculating mathematical algorithms.
Bitcoin — the first and most well-known cryptocurrency.
4. Blockchain vs. Bitcoin — Different in implementations
As people began to understand how blockchain works, they started using it for other purposes: cryptocurrencies, as data storage for things of value, identities, agreements, property rights, and a host of other things.
Bitcoin is the first blockchain database and solved the double-spending problem for digital currency. It helps saving of time and money gained in global transactions.
While blockchain technology is at the heart of cryptocurrencies like Bitcoin and Ethereum, and what they can do as decentralized, stateless currency and payment platforms, it clearly
is a technology with widespread applicability in many sectors of business. These use cases ultimately lead to faster throughput, reduced costs, improved accuracy, greater transparency, and quality, reliability, simplicity, and traceability.
For these reasons and more, blockchain is here to stay.
👉If you have the passion in tech, kindly subscribe to YellowBlocks here: http://bit.ly/yellowblocks-signup to keep in touch!
Curated by YellowBlocks
Source: Blockchain A practicle Guide (Book by Joseph J. Bambara and Paul R. Allen)
Established in 2018, YellowBlocks is the first emerging tech ecosystem connector and consulting firm for Vietnam and the world. We have more than 100 partners and 80 advisors globally, with an extended reach of 100,000+ audience in the tech/ startup space.