Bitcoin vs Cryptocurrency vs Blockchain
The blockchain is a new technology that is redefining the way we do transactions. It allows you to verify key information and establish trust through the Internet and while using the concept of cryptography. Blockchain was initially developed as a part of Bitcoin (A Digital Currency). However, there are some differences between the two. Blockchain acts as a traditional ledger and contains a record of Bitcoin transactions. There was a time when Bitcoin was the only Blockchain, and the terms were used interchangeably. With the advancement in technology, a number of Blockchains bloomed. There were various experiments done, which failed to make the best use of technology. Cryptocurrency, on the other hand, makes use of tokens based on the distributed ledger technology.
Any transaction or other monetary aspect deals with a Blockchain. The best-known Cryptocurrency is Bitcoin, for which Blockchain technology was invented.
However, Bitcoin came in news recently for all wrong reasons. Many bankers, investors across the world consider Bitcoin as fraud and illegal. Well, not all Cryptocurrencies are illegal. In fact, many people confuse Bitcoin with the concept of Cryptocurrency and Blockchain. Cryptocurrency uses an encryption technique to manage the currency unit and verify the transfer of funds. Bitcoin, on the other hand, is a kind of Cryptocurrency, which uses the encryption technique but does not have the legal backing from the central bank.
Blockchain as technology supports Bitcoin trading and involves transactions made in digital currencies. However, it is not in synonymous with the Bitcoin. Blockchain can be used for various applications. What makes Bitcoin an ‘illegal’ thing is because of the organic nature of currency, which is not issued by any central authority.
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