Reasons Why Bitcoin Is Not Used as much as Blockchain Technology

Having revolutionized the world of financial technology, Bitcoin and Blockchain have become household names and often get used interchangeably. Bitcoin is a cryptocurrency and it uses the blockchain or distributed ledger technology to ensure transparency, immutability and decentralization. Bitcoin and other cryptocurrencies act as a web-based ‘medium of exchange’ and uses cryptography to carry out financial transactions. 

Bitcoins can be transacted directly between the two parties with the use of public and private keys with minimal transaction fees. Blockchain is the technology that records and documents the transactions through Bitcoins. However, in terms of application, it has been observed that blockchain technology has found wide-scale application in different sectors and has gained more popularity than Bitcoin. Let us examine the ways blockchain has been utilized by different sectors of the economy and the difference with Bitcoin.

Trans-border Payments

Payments and transactions across the border involve complexities and a lot of time through traditional financial institutions and payment methods. This is because such transactions involve the use of multiple currencies and institutions like banks and are subject to exchange regulations of different countries. All this leads to considerable delay in the process until the recipient actually receives his money and services which accelerate such processes can be availed only after having spent a heavy amount. Blockchain comes as a quick, viable and economical alternative to traditional cross border payments. Blockchain can transfer the amount in real-time transaction processing fees, at a nominal cost compared to the 20% transfer cost of remittances. Although Blockchain too has to bypass certain regulations and security concerns, yet it is less hassle-free than traditional methods.

Smart Contracts

These contracts are computer programs that can keep a check on the different aspects, from facilitation to…

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