Blockchain technology and cryptocurrency are the hottest issues in the world of “smart” technology today; although investors of both technologies have become millionaires in just a few days, still, both are different are different from each other.
Even though at some point, the blockchain and Bitcoin (a form of digital currency) are interchangeable, the blockchain technology and the cryptocurrency are two different systems that have emerged in the global market.
So, what is the difference between blockchain technology and cryptocurrency?
The term blockchain was first derived from “the chain of blocks”; in basic description, it is a distributed ledger system where it can be networked by numbers of computers and share the same database. Through the decentralized approach, all records remain accurate and zero of alteration or corruption.
The blockchain had created a new line of security, where all critical data or information is securely encrypted, stored, and transferred, with zero fraud or corruption.
The cryptocurrency, on the other hand, is derived from cryptography and currency; where cryptography is defined as writing codes and currency talks about the monetary system. Cryptocurrency is defined as the virtual or digital currency that is formed through cryptography.
To fully understand the two systems, here are a few of its differences and similarities:
Similarities between blockchain technology and cryptocurrency:
• Both are virtual and tangible
• Both are developed from “smart” and advanced innovations of technology.
• Both can be used and can benefit from each other; where the blockchain provides a safe path for each transaction, the cryptocurrency is the actual data that are being transferred.
Difference between blockchain technology and cryptocurrency:
• The nature of cryptocurrency and the blockchain technology, where the latter is a decentralized ledger that records the transaction of cryptocurrency, while the former is a virtual tool that is used for each transaction within the block.
• One of the prime uses of cryptocurrency is used as payments, as assets, and investments; however, the blockchain technology is used as the medium that pushes each transaction in cryptocurrency.
• In terms of value, cryptocurrency has monetary value, where a client can make payment or can be kept as their asset. The blockchain, on the other hand, does not hold any monetary value; however, it provides critical benefits that secure each cryptocurrency transaction from fraud or corruption.
• Digital currencies or cryptocurrencies, like Bitcoin, are transferable, which can be transferred from one client’s account to the other; the blockchain, on the other hand, is not transferable but it is designed with encryption that helps secure each transaction.
Plunging Deeper into systems
Both cryptocurrency and blockchain technology play a huge part in the digital world; while the cryptocurrencies are referred to as digital monetary, the blockchain technology, on the other hand, drives the cryptocurrency into the game. This cryptocurrency press release is to fully understand the difference between cryptocurrency and blockchain technology.
Even though both cryptocurrency and blockchain technology is not easy to understand, learning more about the two smart innovations can bring future to your business or company.