What is the Difference Between Blockchain And Bitcoin?

Blockchain is the technology that underpins Bitcoin and it was developed specifically for Bitcoin. So, Bitcoin was the first example of blockchain in action and without blockchain, there would be no Bitcoin. That’s why the two names are so often used interchangeably. 

Bitcoin is a decentralised digital currency, or peer-to-peer electronic payment system, where users can anonymously transfer bitcoins without the interference of a third-party authority (like a bank or government).

Because blockchain and Bitcoin are so inextricably linked, it took people a long time to realise that blockchain actually has much wider applications beyond cryptocurrency networks. In fact, blockchain’s potential is so great that many people believe the technology will revolutionise the way we do business, just like the internet did before it.

Thanks to Bitcoin, we already know that blockchain is great for facilitating digital transactions, but it can also be used for formalising digital relationships through smart contracts. With a smart contract, automated payments can be released once the contract terms have been fulfilled, which promises to save time and help to reduce discrepancies or solve disputes.

Blockchain is the ideal solution for maintaining a long-term, secure and transparent record of assets (land rights would be a good example) that all parties can access securely.

Blockchain allows users to trace the records of ownership for goods all the way back to the source, auditing the supply chain in the process.

Nationwide insurance company is planning to use blockchain to provide proof-of-insurance information. The tool would help police officers, insurers and customers verify insurance coverage instantly, which should help to speed up the claims process.

• Bitcoin is a cryptocurrency, while blockchain is a distributed database.
• Bitcoin is powered by blockchain technology, but blockchain has found many uses beyond Bitcoin.
• Bitcoin promotes anonymity, while blockchain is about transparency. To be applied in certain sectors (particularly banking), blockchain has to meet strict Know Your Customer rules.
• Bitcoin transfers currency between users, while blockchain can be used to transfer all sorts of things, including information or property ownership rights.