Bitcoin is a cryptocurrency based on the application of blockchain systems. Where blockchain is decentralized distributed system for faster, transparent transaction. So, ofcourse they are different as it is like a website made on react vs react technology! But, still lets find out how blockchain has been applied in the bitcoins and also what bitcoins are with top 5 difference between blockchain vs bitcoin!So, let just get started!!!
1.How Bitcoin is different from Blockchain
A blockchain, is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Blockchain was infact designed for bitcoins!Whereas bitcoins is a ledger( A distributed ledger is simply a database spread across different nodes) started in 2009 as a cryptocurrency which is built on blockchain technology.
2.How Bitcoin uses Blockchain
The Bitcoin blockchain in its simplest form is a database or ledger comprised of Bitcoin transaction records. However, because this database is distributed across a peer-to-peer network and is without a central authority, network participants must agree on the validity of transactions before they can be recorded. This agreement, which is known as “consensus,” is achieved through a process called “mining.”
3.What is Bitcoin all about
Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public list called the blockchain.
4.Other applications of blockchain than cryptocurrency
Data in the blocks need not be limited to financial transactions only as in voter registeration done in switzerland people are identified using the hashes of blockchain whose coolest part is that in UPORT app you need not login with password!! It has expanded to real estate and because blockchains are direct transactions there are no brokers here. ArBit has developed its own sort of coins that rewards musicians for their contribution and many more!!!This field is on its way to blow up!!!
5.Data mining in Bitcoin
Bitcoin mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
After someone uses Bitcoins, miners engage in complex, resource-intense computational equations to verify the legitimacy of the transaction. Through mining, a “proof of work” that meets certain requirements is created. The proof of work is a piece of data that is costly and time-consuming to produce but can easily be verified by others. To be considered a valid transaction on the blockchain, an individual record must have a proof of work to show that consensus was achieved. By this design, transaction records cannot be tampered with or changed after they have been added to the blockchain.