Blockchain and Cryptocurrency: The Differences
Unless we’ve been living under a rock, we are sure to have come across the words Blockchain and Bitcoin. Contrary to the popular assumption, the two are not the same. While Bitcoin is a cryptocurrency, Blockchain is a technology that is digitized and decentralized. It acts as a public-ledger for all cryptocurrency transactions.
What is Cryptocurrency?
Bitcoin and other cryptocurrencies were launched to simplify the online transactions by getting rid of third-party payment processing intermediaries. These use encryption techniques to regulate the generation of units of currency and to verify the transfer of funds. These digital currencies are decentralized and cannot be seen by anyone, which is why no institution or bank controls them. In fact, the use of cryptocurrency makes trading online anonymous, quick and hassle free from the regulatory and exchange bodies. It introduced a kind of flexibility in transactions that had hitherto been unheard of.
What is Blockchain?
On the other hand, a Blockchain is a ledger that allows its users to maintain immutable or unchangeable records distributed across a network. Blockchain has been used since long to track inventory and the movement of deliveries in a better manner or to settle payments quickly. Every transaction that occurs can be traced back to its origin, further allowing the Blockchain data high resistance to fraudulent activities like identity theft, double spending fraud or any other unauthorized alteration of transaction activity.
Extended use of Blockchain
The use of Blockchain is not only limited to cryptocurrencies, but has also extended to various other fields including healthcare, logistics, finance, information and technology and so much more. Every day, researchers are coming up with new and unexplored uses of this technology that can transform the businesses and the way of living. In fact, the first Blockchain casino has just been launched, and Walmart is using this technology to reduce food-tracing processes from 6 days to just a few seconds. The coming of Blockchain will introduce swift information verification, easy and faster transactions and transparency as well as security in the network.
Concluding...
In short, while cryptocurrency makes use of the Blockchain technology, it is just one of the applications. The network of blockhain is spread on a far more larger scale than we can think of and is waiting to be explored more rigorously for use by mankind.