Main Differences Between Bitcoin and Blockchain Technology

As the value of the cryptocurrency follows an upward trend, there is an increased number of people who are looking to learn more about crypto and blockchain technology. Actually, a lot of crypto newbies interchangeably use blockchain and Bitcoin, but they are completely different terms, as we would explain below. In this article, we explore the main characteristics that distinguish blockchain technology and Bitcoin that would help you learn more about cryptocurrencies.

Blockchain Technology vs. Bitcoin

The main difference is that Bitcoin is the cryptocurrency that is used as a means of exchange on the Internet or a medium to transfer funds online. Blockchain technology, on the other hand, is an open-sourced technology that was created to provide the foundation for the operation of Bitcoin, and it is used as an underlining technology for other cryptocurrencies nowadays.

More specifically, blockchain is a distributed peer-to-peer-based network that collects information in ‘blocks’ that are linked with other blocks in the network via cryptography. After each block is filled with information, it is linked to a previously validated block of transactions, and that makes each block of transactions irreversible, and it is impossible for someone to modify the data in the network.

Among the other benefits offered are complete transparency, the anonymity of the users, and negligible transaction fees. In other words, Bitcoin is a cryptocurrency that you can buy, sell, or exchange for other currencies on the trading sites, while the process of verifying BTC transactions is completed on the blockchain network. This underlying technology is also used across different sectors, including the business and public sector, because its features are beneficial for various industries.

Value of Bitcoin

The value of Bitcoin, however, is affected by how the blockchain network is designed that’s why it’s important for new investors to familiarize themselves with the operations of the blockchain and its protocols.

Also, online trading sites are an important part of the Bitcoin ecosystem because there, you can check the price of Bitcoin and purchase BTC or sell it for other traditional currency or another cryptocurrency. Also, automated trading sites like bitcoindigital.io are getting more popular because they are designed to automatically perform trading based on the changing market conditions.

For this purpose, it applies a subset of AI technology – Machine Learning. Plus, the mobile app is compatible with both iOS and Apple mobile devices, so it works perfectly on any device. You can earn here up to $800, while to register on the site, you need to deposit at least $250.

For example, there is a blockchain protocol that adjusts the difficulty of mining which is the process of generating new BTC in the network, and it is increasing the difficulty of mining according to the collective computing power in the network. Thus, the supply of BTC is smaller than the demand.

Bitcoin Halving

Another protocol that is responsible for one of the most important events for Bitcoin’s price is Bitcoin halving which reduces the number of BTC by cutting in half the available supply.

After each is halving, the quantity of BTC that is generated is halved, and obviously, this impacts the price of Bitcoin because based on the law of supply and demand as the demand is increasing and the supply is decreasing. Hence, the price of Bitcoin is going up.

Conclusion

The difference between Bitcoin and blockchain technology is that cryptocurrency Bitcoin is based on decentralized technology – the blockchain network. It allows for the deflationary cryptocurrency to succeed and not be impacted by any central financial institution or other entities that are external to the blockchain network.

As we said earlier, for anyone that is looking to invest in BTC or engage in any role in the blockchain network, for example, as a miner, it is extremely important to take the time and learn more about blockchain technology and how it can impact the value of BTC investments.