Cryptocurrency and Blockchain have become very popular in recent years as more businesses and organisations are incorporating this technology into their systems. This can be attributed to their applications in fields such as finance, banking, healthcare, government, and many others.
Both of these technologies were developed by the same team that founded e-commerce giant, Paypal. The difference between cryptocurrency and blockchain is not just terminological but also technical. In fact, many people confuse the two terms often, so let's take a look at some of the differences between these two digital technologies.
You certainly aren't the only one who doesn't understand the distinction between a cryptocurrency and a blockchain. Actually, a lot of individuals are so confused by the subject that they write it off as "complex" or "difficult." That's great if you eat, sleep, and live Bitcoin, but for the rest of us ordinary humans, it can be difficult to understand. See how I attempt to break everything down into manageable chunks below to perhaps help clarify things.
Blockchain technology and cryptocurrency are two incredibly exciting developments in the world of finance. While most people are familiar with cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, not everyone knows all that much about the digitised public ledgers that make these types of currencies possible.
So what exactly is blockchain technology?
Blockchain is a growing collection of records (blocks). Each record contains a time stamp and a link to the previous one. This makes every record in the chain traceable, which creates tamper-resistant, accurate transaction histories.
Blockchain is a decentralised, distributed public ledger capable of automatically recording and verifying a high volume of digital transactions.
Blockchain technology is the underlying technology that powers cryptocurrency and other digital currencies. While blockchain technologies have existed for years, cryptocurrency was first created as a way to use blockchain technology in order to create new decentralised applications.
Blockchain technology allows users and businesses to create, manage, and store records in a digital ledger called a "Block." This data can be shared among many users who all have access to the same information. Transactions are recorded in blocks that are linked together in chronological order.
The blockchain is maintained by a community of computers that validate transactions and store copies of the ledger. This means that anyone in possession of the ledger can verify whether or not transactions occurred without having to ask any other party-the system itself ensures integrity.
Cryptocurrency is a digital currency that uses cryptography to secure its transactions and generate new units of currency through complex mathematical problems. These currencies are typically traded online through peer-to-peer networks using software known as wallets that allow people to send money from one account to another without involving banks or other third parties such as credit card companies or payment processors like PayPal.
Cryptocurrency is just like regular money—it's money that exists digitally, in digital form. Cryptocurrencies are typically created through mining, which involves solving complicated mathematical problems; once you solve one, you get a reward in the form of coins or tokens, which can then be traded or used as a currency on their own.
Cryptocurrency uses blockchain technology as its core platform for transactions. Cryptocurrency works similarly to traditional currency but instead of being printed by governments, it is created by computers solving complex mathematical equations using algorithms called cryptography.
The value of cryptocurrency is based on supply and demand for particular coins; however, unlike paper currency where governments can print more money whenever they want , cryptocurrencies cannot be printed by any entity or group of entities outside their own network.
● Inherent Nature
Data on decentralised networks can be stored using the blockchain storage technology. The same as the US dollar, cryptocurrencies are a form of currency. Beyond only recording cryptocurrency transactions, a blockchain can store a variety of different forms of data.
The use of blockchain technology is global and decentralised. All of a blockchain's records are not kept in a single place.Cryptocurrency may be accessed through mobile wallets even though it is kept in blockchains. Anywhere there are shops that accept bitcoins, you can use it if you have a bitcoin wallet.
Blockchain is quite transparent because it's a public ledger. A blockchain network allows anyone to sign up and browse the data. However, anonymity is a benefit of cryptocurrency. A bitcoin transaction's source and destination may therefore be seen by everyone, but its author cannot be determined.
● Monetary Value
Each and every cryptocurrency has a monetary worth. You've probably heard about Bitcoin reaching a high of $65,000 (equivalent to 48 lakh rupees) or Ether reaching a high of $4,000. (about 3 lac rupees).A blockchain has no monetary value.
Blockchain technology has uses outside of cryptocurrency. Blockchain can be used to track transactions in the financial, supply chain, retail, and healthcare sectors. Cryptocurrency is a type of digital money that may be used for both investing and making purchases of goods and services
In summary, the difference between blockchain and cryptocurrency is that blockchain is a distributed databaseÂ with which you can maintain a list of transactions, while cryptocurrency is a digital currency.
The blockchain has many advantages over other financial databases, but widespread adoption is what will truly determine whether this technology is revolutionary.
As of 2017, there are still far more questions than answers. However, it's clear that the applications for the blockchain go beyond just cryptocurrency. In our opinion, it would be wise for businesses and governments to continue exploring this technology, to see how it can be used to improve efficiency and transparency even outside of the financial sector.
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