Blockchain and cryptocurrencies are two phrases typically used interchangeably. Nevertheless, there’s a massive distinction between the 2. Cryptocurrencies are digital currencies that use blockchain as a ledger for storing data of crypto transactions. Nevertheless, blockchains have many makes use of past cryptocurrencies, together with storing and accessing medical information, provide chain and logistics info, and monetary data.
What’s Blockchain?
A blockchain is a set of data or an digital database, like a spreadsheet. A blockchain holds bigger quantities of data, comparable to cryptocurrency transaction data, saved in “blocks” or teams, in contrast to a daily spreadsheet.
These blocks are distributed throughout a number of computer systems or a “distributed ledger.” As soon as every block reaches its storage restrict, it’s “chained” to a block stuffed beforehand, and a brand new block comes into use.
What’s Cryptocurrency?
Cryptocurrency is digital cash with market worth like different currencies. Cryptocurrencies will also be used as a retailer of worth like gold. The primary cryptocurrency was Bitcoin which pioneered blockchain know-how.
Subsequently, different cryptocurrencies, comparable to Ether, got here up with their very own blockchains (often called Ethereum).
Similarities Between Blockchain and Cryptocurrency
Intangible
Each blockchain and cryptocurrencies are intangible. Cryptocurrencies are intangible digital tokens, which you can not maintain bodily just like the US greenback or the Indian rupee. The blockchains used for storing cryptocurrencies don’t exist in a single place or one bodily information centre.
Superior
Each blockchain and cryptocurrencies are technological developments. Blockchain is the underlying know-how behind cryptocurrencies. Blockchain is rather more superior and safe than conventional databases. Cryptocurrencies are technologically superior than bodily or paper-based currencies.
Interdependent
Blockchain got here into existence to file transactions of bitcoin, the world’s first cryptocurrency. All main cryptocurrencies have blockchains for recording transactions. If somebody buys a brand new bitcoin, it’s recorded in a bitcoin blockchain.
Variations Between Blockchain and Cryptocurrency
Inherent Nature
Blockchain is a storage know-how used for saving information on decentralized networks. Cryptocurrency is a medium of alternate just like the US greenback. A blockchain can be utilized for storing several types of info past cryptocurrency transaction data.
Financial Worth
All cryptocurrencies have a financial worth. It’s essential to have heard of Bitcoin hitting a excessive of 65,000 {dollars} (round 48 lac rupees) or Ether reaching 4,000 {dollars} (about 3 lac rupees). A blockchain doesn’t have any financial worth.
Utilization
Blockchain know-how has makes use of past cryptocurrencies. Blockchain can be utilized for recording transactions in banking, healthcare, provide chain, and retail. Cryptocurrency is digital cash, which can be utilized for getting items and companies and for funding.
Mobility
Blockchain know-how is decentralized and distributed all around the world. There isn’t any single location the place all data of a blockchain are saved. Cryptocurrencies, though held in blockchains, will be accessed by way of cell wallets. If in case you have a bitcoin pockets, you should use it anyplace for transacting with events accepting bitcoins.
Transparency
Blockchain, being a public ledger, is extremely clear. Anybody can be a part of a blockchain community and consider the knowledge obtainable. Alternatively, cryptocurrencies provide anonymity. So, whereas anybody can see the supply/vacation spot of a bitcoin transaction, nobody can know who’s behind the transaction.