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In the digital age‚ “cryptocurrency” and “blockchain” are often used
interchangeably‚ leading to confusion. However‚ they are distinct concepts.
Cryptocurrency is a digital asset used for transactions‚ while blockchain is
the underlying technology that enables its secure and decentralized operation.
Table of contents
What is Blockchain?
A blockchain is a distributed‚ immutable ledger that records transactions
across many computers. This decentralized nature enhances security and
transparency. Blockchains can store various types of data‚ not just
cryptocurrency transactions.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for
security. It operates independently of a central bank and relies on
blockchain technology for secure transactions. Bitcoin is the most well-known
cryptocurrency‚ but thousands of others exist.
Key Differences
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Function: Blockchain is the infrastructure‚ while cryptocurrency is an
application built on it. -
Scope: Blockchain has broader applications beyond cryptocurrency‚ such
as supply chain management and healthcare records. -
Purpose: Cryptocurrency is designed as a medium of exchange‚ while
blockchain provides a secure and transparent record of transactions.
In essence‚ blockchain is the foundation‚ and cryptocurrency is one of its
many potential applications. Understanding this distinction is crucial for
anyone interested in these technologies.
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