Whenever you hear the word blockchain, you might immediately think of cryptocurrency, and the same happens the other way around. In simpler words, while they are related, blockchain is the technology that makes cryptocurrencies possible, but cryptocurrencies are just one way that blockchain can be used.
Blockchain first appeared with Bitcoin. Bitcoin was a type of cryptocurrency, and that’s why people sometimes mix up blockchain and cryptocurrencies.
But here is what blockchain really is: it is like a digital record- keeper that is not controlled by just one person or group. It stores records of transactions called mom and once a transaction is recorded, it cannot be changed. Imagine it like a chain of blocks, where each block has a bunch of transactions. Once a block is finished, it is added to the chain, and it stays that way forever. The interesting thing is, no single person or company owns or controls this record- keeper. It is for everyone to use, and the data is super secure on each block.
What is cryptocurrency?
Cryptocurrency is a blend of two words crypto and currency. Currency is simple means money, but crypto means encrypted or written in secret codes. So, cryptocurrency is a digital kind of money that is coded for security. It is designed to make exchanging things easy and that’s where blockchain technology comes in. All cryptocurrency transactions are recorded using blockchain.
Bitcoin was the first cryptocurrency ever created, and it is often linked with blockchain. After that, thousands more cryptocurrencies have appeared.
Cryptocurrencies and blockchain team up to create a chain of secure, digital transactions. There is no single office or place where these operations happen.
Here is why they are similar:
Advanced technology school and both blockchain and cryptocurrencies are advanced and still intriguing to many. The fact that there is no single authority overseeing them can bother some people. Crypto currencies were also seen as a weird idea when they started people could not grasp the idea of using money that was not physical. But now, they are widely accepted.
Note: Blockchain is the sturdy foundation holding up cryptocurrencies. It spreads power, keeps things clear, and secure transactions. It’s why cryptocurrencies work and are gaining popularity.
The very first cryptocurrency, Bitcoin, was built on blockchain technology. While they become famous together. After Bitcoin, new cryptocurrencies also use blockchain. Blockchain and cryptocurrencies seemed inseparable. Even now, most cryptocurrencies rely on blockchain to stop.
However, the future might change this. IOTA is a cryptocurrency that is not on blockchain, it uses something called tangle. It is claimed to be faster and better than bitcoin. This could be the beginning of a new era where blockchain and cryptocurrencies evolve in unexpected ways shaping the future.
The future looks like more Acceptance for both blockchain and cryptocurrencies. But remember, these are separate technologies, each with its path.
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