Is blockchain different from cryptocurrency?

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Is blockchain different from cryptocurrency?

  Blockchain and cryptocurrencies are a topic that attracts people from all over the world. The number of people investing in cryptocurrencies is increasing every day. However, the question remains, and the answer is confusing. However, blockchain and cryptocurrencies differ in various ways.

What is blockchain ?

If you are familiar with banking, investing, and cryptocurrency topics, you will surely have come across the term “blockchain.” Well, blockchain is a special type of database. It works differently than traditional databases. Blockchain stores data in blocks and strings them together.

  Once the new data is saved, it goes into a new block and then appended to other previous blocks after filling. Blockchain stores different types of information and is often used as a transaction ledger. In the case of Bitcoin, the blockchain is decentralized to allow all users to have collective control, which hinders individual user control.

What is cryptocurrency ?

  These are digital coins that cannot be counterfeited. They are secured by cryptography and are decentralized networks running under blockchain technology. What makes cryptocurrencies unique ? They are not issued or managed by any central authority. Cryptocurrencies are resistant to government interference or manipulation.

  You can pay your phone bill using cryptocurrency. Bitcoin is also accepted by some online casinos, like Baccarat and NetBet Casino.

Common examples of cryptocurrencies are

Bitcoin , abbreviation : BTC or​​​ Published on the 31st , January 3 , 2009 , the genesis block was born. In some countries, central banks, and government agencies, Bitcoin is regarded as a virtual commodity rather than a currency.

  Anyone can participate in Bitcoin activities, which can be issued through computer operations called mining. The number of Bitcoin protocols is capped at 21 million to avoid inflation issues. The use of Bitcoin uses private keys as digital signatures, allowing individuals to pay directly to others, just like cash, without going through third-party institutions such as banks, clearing centers, electronic payment platforms, etc., thus avoiding high handling fees, cumbersome processes, and Subject to regulatory issues, any user with a digital device that can connect to the Internet can use it.

  Ethereum is an open source public blockchain platform with smart contract functions. It provides a decentralized virtual machine ( called the Ethereum Virtual Machine ) through its dedicated cryptocurrency Ether ( also known as “Ether” ) to process peer-to-peer contracts.

  The concept of Ethereum was first proposed by programmer Vitalik Buterin between 2013 and 2014 after being inspired by Bitcoin. It roughly means “the next generation of cryptocurrency and decentralized application platform” and was crowdfunded through ICO in 2014. to start developing. Currently, Ethereum is the second-largest cryptocurrency by market value. Ethereum is also known as the “second-generation blockchain platform”, second only to Bitcoin.

  Ripple is the base currency of the Ripple network. It can be circulated throughout the entire Ripple network, with a total number of 100 billion, which gradually decreases as transactions increase. The operating company of Ripple is Ripple Labs ( its predecessor is OpenCoin) .

  Ripple is the only universal currency in the ripple system. It is different from other currencies in the ripple system. Other currencies such as CNY and USD cannot be withdrawn across gateways. In other words, the CNY issued by gateway A can only be withdrawn at gateway A. If If you want to withdraw money at gateway B , you must use the pending order function of the ripple system to convert it into the CNY of gateway B before you can withdraw money at gateway B. Ripple has no such restrictions at all and is universal within the Ripple system.

  Litecoin is a peer-to-peer electronic cryptocurrency and an open source software project under the MIT /X11 license. Litecoin is inspired by Bitcoin (BTC) and technically has the same implementation principles. The creation and transfer of Litecoin are based on an open source encryption protocol and are not managed by any central authority. Litecoin aims to improve Bitcoin and has three significant differences compared to it. First, the Litecoin network can process a block approximately every 2.5 minutes ( instead of 10 minutes ) , thus providing faster transaction confirmations. Second, the Litecoin network is expected to produce 84 million Litecoins, which is four times the amount of currency issued by the Bitcoin network. Third, Litecoin uses the scrypt encryption algorithm first proposed by Colin Percival in its proof-of-work algorithm , which makes Litecoin mining on ordinary computers easier than Bitcoin ( before the birth of ASIC mining machines) ) . Each Litecoin is divided into 100,000,000 smaller units, called Litoshi in English , defined by eight decimal places.

  Bitcoin Cash Bitcoin Cash is a hard fork of the cryptocurrency Bitcoin at Block 478558 ( August 1 , 2017 ) due to Bitcoin scalability issues .

Blockchain vs Cryptocurrency – How are they different ?

Cryptocurrency is an application of blockchain.

  Blockchain is a technology that has many uses besides cryptocurrency. It works on a wide range of assets such as cars, food, assets, real estate, beauty products and more. For example, some companies use blockchain to reduce fraud and increase the security of their valuable data.

  Blockchain is highly reliable and is preferred by banking institutions. It is considered more reputable than Bitcoin, and many financial institutions have adopted blockchain technology in their operations. Bank of America, for example, has since expressed interest in adopting the technology. This is to simplify banking processes.

When we talk about versatility, blockchain technology has multiple functions. Cryptocurrencies like Bitcoin, on the other hand, are less versatile. Bitcoin is also decentralized and unregulated, and is not accepted in some countries. For example, these countries are Algeria, Nepal, Macedonia and Ecuador. Blockchain has wide applications in many other fields. Most companies are now using blockchain technology to streamline their functions and operations.

  Blockchain is a compelling technology that promises to impact the economy in many positive ways. Although it is often associated with cryptocurrencies, it can provide much more functionality when it comes to sharing and protecting an organization’s data. Blockchain is a futuristic technology that can solve most of the technological problems we face today.

Blockchain and cryptocurrencies are different. Blockchain is a technological database that plays an important role in cryptocurrency transactions. Cryptocurrency, on the other hand, is a form of digital currency that can be used to pay bills or as an investment.

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