Blockchain has played a vital part in developing many cryptocurrencies, especially Bitcoin that made itself to the world news. Although, cryptocurrencies are not new, but the surge in their values rose recently, attracting the whole world. When Bitcoin touched $17000 mark, everyone wanted to try his head around it. However, experts suggest knowing the commodity before investing.
Now that you’ve got plenty of cryptocurrencies that run on blockchain, people often tend to take cryptocurrencies and Blockchain as of the same thing. However, it is important to know that they are totally different to each other. Today, we’re going to elaborate on what is the difference between cryptocurrency and blockchain.
Blockchain is a technology that works as a distributed ledger over a huge network. Many refer to blockchain as a new type of internet, which makes information distributed. Albeit, information is never copied off the original source, but rather shared on a public ledger (register). When there’s any transaction that takes place on blockchain, every node gets notified as this virtual ledger makes an entry for the same.
In other words, blockchain can be understood as an example of a spreadsheet. Imagine that there is a spreadsheet on a network and it is copied a thousand times to a thousand different computers over the same network. Now, the blockchain technology is capable of making changes to this spreadsheet and make it have done on all the thousand spreadsheets over the network. So, when there’s any change in the spreadsheet, same would be made available over all of them.
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Cryptocurrency is an entity that uses blockchain technology as its path. A cryptocurrency is also known as a digital cash that is decentralized and free from any controlling authority. According to experts, cryptocurrency is the 21st century unicorn, which is also the money of future.
Although, there is no definite definition of cryptocurrency that makes it hard for everyone to understand. It is an esoteric term that is not meant for everyone to understand (Just like The Matrix!). It may have become a hot potato since the year 2017, but it is still geeky for most of the population. However, government and banks do understand the value of cryptocurrency and they adore the power it consists.
So, simply put, cryptocurrency is a virtual cash that uses Blockchain as its ledger. Every transaction, whether its debit or credit, gets registered in the digital books of every connected note. This way, the transaction cannot be forged, making it more reliable.
What is the difference between cryptocurrency and blockchain?
One of the major differences between cryptocurrency and blockchain is that they are not same. Where blockchain is a technology that records every transaction in the form of a cryptographically verifiable blocks or chunks, which then chained together, making a blockchain. On the other hand, Cryptocurrency is just one of the entities that use Blockchain technology for its sustainability
It is important to know that cryptocurrency is not the only service that uses blockchain for its survival. Now that blockchain uses the mechanism to store data in the form of blocks, cryptocurrency is just one type of data that Blockchain can store.
This way, it can be concluded that every cryptocurrency implements the blockchain technology but all the blockchain projects do not involve cryptocurrency.
Now that you know on what the difference between cryptocurrency is and blockchain, you’ve got a clearer picture of both the articles. There are various digital coins that employ blockchain technology but have totally different characteristics. Another major difference to observe is that blockchain is a technology, which is all set to enlighten other sectors of technology. In another such story, blockchain is also going to uplift automobile industry. If you wish to include some more difference between the two, do let us know in the comments below.