<----------Google Webmaster--------> Blockchain vs Crypto – WebTechInsights

Blockchain and cryptocurrency are two terms that are often used to refer to the same thing. There is however an important distinction between these two. Bitcoin is a digital currency. They make use of blockchain as a way of keeping records of transactions in crypto. Blockchains, however, have many applications that go beyond cryptocurrency, like the storage and retrieval of medical information including logistics and supply chain information, as well as financial records.

What is Blockchain?

Blockchains are collections of data that are electronic databases similar to spreadsheets. Blockchains contain larger quantities of information, including the records of transactions made in cryptocurrency. They are kept within “blocks” or groups, unlike spreadsheets.

The blocks are then distributed over several computers or a “distributed ledger.” Once every block reaches its storage capacity then it gets “chained” to a block that was previously filled and another block is added to use.

What is Cryptocurrency?

A cryptocurrency is a digital currency that has market value similar to other currencies. They can also be used to store value as gold. First cryptocurrency to be used was Bitcoin that pioneered blockchain technology. Then, other cryptocurrencies like Ether have come up with the blockchain of their choice (known by the name of Ethereum).

 

Similarities Between Blockchain and Cryptocurrency

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  1. Intangible:

Blockchain and cryptocurrency are both intangible. They are digital tokens that are not tangible that you can’t hold physically, just like those of the US dollar or Indian rupee. The blockchains that are used to store cryptocurrency are not located in a single location or a single data center.

2. Advanced

Blockchain and cryptocurrency are both technological advances. Blockchain is the technology behind cryptocurrency. Blockchain is far more advanced and secure than conventional databases. Cryptocurrencies are more technologically superior than paper or physical currency.

3. Interdependent

Blockchain was created to record bitcoin transactions the first cryptocurrency to be discovered in the world. The majority of cryptocurrencies have blockchains to record transactions. When someone purchases a new bitcoin, the transaction is stored in the bitcoin blockchain. Differences Between Blockchain and Cryptocurrency

4. Inherent Nature

Blockchain is a technology for storage utilized to store data in distributed networks. Cryptocurrency is an exchange medium similar to that of the US dollar. Blockchain can be utilized to store various types of data that go beyond transactions.

5. Monetary Value

Each cryptocurrency has a financial value. There is no doubt that you have heard of Bitcoin reaching a peak that was 65,000 bucks (around the equivalent of 48 lakh rupees) or Ether at 4000 dollars (about 3 lac rupees). Blockchains don’t have any value in terms of money.

6. Usage

Blockchain technology can be used for more than cryptocurrency. Blockchain technology can be utilized to record transactions in healthcare, banking supply chain, healthcare, and retail. Cryptocurrency is a digital currency, that can be used to purchase items and services, as well as as an investing.

7. Mobility

Blockchain technology is distributed and decentralized across the globe. There isn’t one central location where all the data of a blockchain are kept. The cryptocurrency, even though it is stored in blockchains, is accessible through mobile wallets. If you own an account with bitcoin your wallet is able to be utilized in any place to transact with any party that accepts bitcoins.

8. Transparency

Blockchain is an open ledger that is incredibly transparent. Anyone can join a blockchain-based network and access the data accessible. In contrast, blockchain technology provides privacy. While anyone could identify the source and destination of a bitcoin transaction no one knows who’s responsible for the transactions.