Blockchain and cryptocurrencies is a topic that draws people from all over the globe. The number of people investing in cryptocurrencies expands each day. But, the question still lingers, and the responses are quite confusing. Nevertheless, blockchain and cryptocurrencies are different in various ways. And this article guides you in understanding these variations better.
What is blockchain?
If you’re familiar with banking, investing, and cryptocurrency topics, then you must have come across the term blockchain. Well, blockchain is a particular type of database. It’s different from a conventional database in the way it works. Blockchain stores data in blocks and strings them together.
Once new data is saved, it goes under a new block, later attached to other previous blocks once filled. Blockchain stores different types of information, and it’s commonly used as a transactional ledger. In the case of Bitcoins, blockchain is decentralized to allow all users to have collective control, and this discourages control by single users.
What are cryptocurrencies?
These are digital coins that are impossible to counterfeit. They are secured by cryptography and are decentralized networks that operate under blockchain technology. What makes cryptocurrencies unique? They are not issued or governed by any central authority. Cryptocurrencies are resistant to interference or manipulation by governments.
You can use cryptocurrencies to pay phone bills. Bitcoins are also accepted in some online casinos, like the baccarat NetBet casino. Examples of common cryptocurrencies are;
- Bitcoin
- Ethereum
- Ripple
- Litecoin
- Tether
- Bitcoin Cash
- Libra
Blockchain Vs. Cryptocurrencies- How are they distinct?
- Cryptocurrencies are an application of blockchain.
Blockchain is a technology that boasts of varied uses other than cryptocurrencies. It’s applicable in a wide range of assets such as cars, food products, assets, properties, beauty products, and many more. For instance, some companies use blockchain to reduce fraud and heighten the security of their valuable data.
- Trustworthiness& Preference
Blockchain is highly reliable and is preferred by banking institutions. It’s deemed to be more reputable than Bitcoin, and many financial bodies employ blockchain technology in their operations. For example, the bank of America has since expressed interest in employing the technology. And this is to streamline banking processes.
- Versatility
When we talk of versatility, blockchain technology is associated with varied features. On the other hand, cryptocurrencies like Bitcoin are less versatile. Bitcoin is also decentralized and unregulated and isn’t accepted in some nations. These are, for example, Algeria, Nepal, Macedonia, and Ecuador. Blockchain has a wide variety of applications in many other fields. Most companies are now embracing blockchain technology to streamline their functions and operations.
- Economical impact
Blockchain is a compelling technology and is expected to impact the economy in many positive ways. Although it’s usually associated with cryptocurrencies, it can offer much more in sharing and securing organizational data. Blockchain is a futuristic technology that may solve most of the technical issues that we face today.
Final thoughts
Blockchain and cryptocurrencies are different. Blockchain is a technological database that plays a significant role in cryptocurrency transactions. On the other hand, cryptocurrencies are a form of digital money and can be used to pay bills or as investments.
