The Confusion

Bitcoin and Blockchain are related, but are different things.

Bitcoin is a digital currency built from the blockchain. Blockchain is a technology that enables assets to be stored and moved from one person to another without a single trusted party (i.e a bank or financial institution).

To explain these differences I will use a smartphone and an iPhone.

Smartphone Analogy

Photo by Xavier Wendling on Unsplash

Apple was the first company to create something called, the smartphone concept. The smartphone concept outlines how phones should be able to call, text, and listen to music on a single device.

Key point: An iPhone is a type of smartphone, but a smartphone is not just an iPhone. The same logic holds true for Bitcoin. Bitcoin is a type of blockchain, but the blockchain is not just Bitcoin. Bitcoin is the first blockchain. HOWEVER, there are more blockchains such as Etherum and Litecoin just as there are other types of smartphones such as the Samsung Galaxy or Android.

What is the Blockchain then?

For now just think of the Blockchain as a way to send assets to another person without a bank. Look out for the next blog post that will discuss what the Blockchain is and how it works in more detail. Join the Email List For More Helpful Information.

Credits

Thanks to Joel Filipe and Xavier Wendling for their beautiful photos