Difference between blockchain and cryptocurrency


Blockchain and Cryptocurrency are some big words thrown around us. Many people have still confused about blockchain and cryptocurrency. They think that blockchain is a cryptocurrency and vice versa.

Blockchain and cryptocurrencies trying to go hand in hand with one another but they do have some differences too. Through this article, we are deep dive into differences between these two. Which you need to know.

The term blockchain developed from the chain of blocks and cryptocurrency is a cryptographic currency. But the fundamental difference between these concepts has to do have with distributed ledger technology used.



BLOCKCHAIN

CRYPTOCURRENCIES


A Blockchain is a distributed ledger technology that forms a chain of blocks. 


Each block includes information and data that are bundled together and verified. 


These blocks then validated added onto the chain of transaction. 


These blocks of the transaction are permanently recorded into the distributed ledger that is Blockchain. 

 


Cryptocurrency is one of the use cases of larger technology called Blockchain. 


Cryptocurrency can be seen as a tool or resource on a blockchain network. 


It is token based on a distributed ledger. 

Cryptocurrency is a digital currency formed on the basis of cryptography. 

 


Blockchain is a Decentralized technology which records cryptocurrency transactions. 


A virtual currency used in a transaction on a Blockchain. 


Blockchain can be used to develop or reform various systems.

 


Cryptocurrency tokens serve different purposes on the blockchain network.  


Blockchain is not an asset class. 


Cryptocurrency is a type of asset class. That can be used multipurpose and has value through its utility function. 


A native token or as an asset backed piece of value and asset-backed token. 

 


Blockchain is the platform which brings cryptocurrency into play. 


Blockchain is the technology that serves as a distributed ledger that forms the network. 


This the network creates the means for transacting and enables transferring of value and information. 

 


Cryptocurrencies are the tokens used within the blockchain network to send value and pay for transactions. 


You can see them as tools on blockchain in some cases serving as a resource or utility function. 

 


Blockchain often used to withdraw existing flaws from the current system and make them efficient. 

Eg. Supply chain 

 


Cryptocurrencies are used to digitize the value of an asset. 


Eg. Tokenization 

 


Blockchains have no monetary value. 


Cryptocurrencies can be as a measure of wealth. 


Blockchains are non-transferable. 


Cryptocurrencies are meant to be transferred. 

 

In some cases, blockchain technology and cryptocurrency are referred by the same name. 


Eg. Bitcoin 

 


In some projects like Ethereum use differentiating terms.

Ethereum being blockchain and ETHER being the crypto token.


The blockchain serves as the base technology and which cryptocurrencies are a part of the ecosystem. They go hand in hand. 


Cryptocurrencies are necessary to transact on the blockchain.  

But without blockchain, we would not have a means for these transactions to be recorded and transferred.