Whenever the word blockchain is used, cryptocurrency automatically comes to mind, and it’s true the other way as well. Many people believe that the two are synonymous and, thus, are often used interchangeably, but it couldn’t be more wrong. Cryptocurrencies are a type of money that use blockchain technology to operate.
In this detailed guide, you will learn about blockchain technology, how it works, and how cryptocurrency relates to it.
What Is a Blockchain?
Blockchain was first introduced with the debut of Bitcoin. Bitcoin was a cryptocurrency, and from then on, myths spread that blockchain and cryptocurrencies are the same.
Blockchain is a decentralized ledger that keeps the records of transactions, and these ledgers cannot be altered. So, once a transaction has been approved and included in a block, it becomes permanent. Now it will always exist in the blockchain. What makes blockchain technology different is that it is completely decentralized means there is no central authority that owns it or manages it. It is for consumers and belongs to them.
The data is saved on blocks. Each block is made up of a certain number of transactions. When a block is completed, the network approves it, and it is added to the blockchain, making it unchangeable.
What Is Cryptocurrency?
Cryptocurrency is made up of two words- crypto and currency. While the meaning of currency is clear that it is money, crypto means encrypted or written in codes. So, the meaning of a cryptocurrency is that it is a digital asset that has a value like money. It is created to foster easy exchange, and that’s where blockchain comes into the picture. All the crypto transactions that take place are recorded using blockchain technology.
The first ever cryptocurrency was Bitcoin, which became synonymous with blockchain. Since then, thousands of cryptocurrencies have entered the market.
Continue reading: https://readwrite.com/relationship-between-blockchain-and-cryptocurrency/
In this detailed guide, you will learn about blockchain technology, how it works, and how cryptocurrency relates to it.
What Is a Blockchain?
Blockchain was first introduced with the debut of Bitcoin. Bitcoin was a cryptocurrency, and from then on, myths spread that blockchain and cryptocurrencies are the same.
Blockchain is a decentralized ledger that keeps the records of transactions, and these ledgers cannot be altered. So, once a transaction has been approved and included in a block, it becomes permanent. Now it will always exist in the blockchain. What makes blockchain technology different is that it is completely decentralized means there is no central authority that owns it or manages it. It is for consumers and belongs to them.
The data is saved on blocks. Each block is made up of a certain number of transactions. When a block is completed, the network approves it, and it is added to the blockchain, making it unchangeable.
What Is Cryptocurrency?
Cryptocurrency is made up of two words- crypto and currency. While the meaning of currency is clear that it is money, crypto means encrypted or written in codes. So, the meaning of a cryptocurrency is that it is a digital asset that has a value like money. It is created to foster easy exchange, and that’s where blockchain comes into the picture. All the crypto transactions that take place are recorded using blockchain technology.
The first ever cryptocurrency was Bitcoin, which became synonymous with blockchain. Since then, thousands of cryptocurrencies have entered the market.
Continue reading: https://readwrite.com/relationship-between-blockchain-and-cryptocurrency/
