The use of Blockchain has increased in recent years due to the popularity of metaverse, AI, Cryptocurrency, and virtual reality. Despite becoming popular still people do not know what these digital entities are or they get confused by others. The same is true for Blockchain technology and cryptocurrency. If millions of people use them interchangeably, it’s high time you explored Blockchain technology vs Cryptocurrency. Understanding what makes it different is important in this rapidly changing technology landscape.
In comparative analysis, first of all, both these terms must be used synonymously. Bitcoin is a popular cryptocurrency, which is the first blockchain application. In 2009, Blockchain technology surpassed cryptocurrency. This bridge caters to industries like banking, asset management, supply chain voting, etc. By 2027, the global Blockchain market is expected to reach 163 billion USD!
Learn more about future technologies.
Table of contents
What is Blockchain?
There is an updated version of the Blockchain database. Don’t know what a database is? organized collection of data that can be easily managed or accessed by relevant personnel called a database. So Blockchain is a computer file to store data!
Precisely, a Blockchain is an open or disturbed file. all data that is distributed and duplicated in the database makes the wide range of computers which is decentralized.
This decentralized is what separates it from the traditional database. A standard database typically hosts a central administrator. However, in blockchain, all databases are transparent . And the data is verified with each user’s agreement.
Does this transparency or decentralization make it less secure? No, such a thing is made secure and safe to any central point where any hacker will not attack and target the sky.
Examples of Blockchain networks
1. Public Blockchain
According to the name, we can see it’s a public blockchain network that is open to the public. This type of blockchain technology fully adopts one of the main attributes of the blockchain system, which is decentralization.
2. Private Blockchain
A private blockchain is one of the types of blockchain networks operated in restricted environments and controlled by a single entity. Although distributed networks are still powered by a peer-to-peer connection.
3. Hybrid Blockchain
Hybrid blockchain contains elements of both public and private blockchain systems. These are managed by a single entity, with a private permission-based system alongside a public system.
4. Consortium Blockchain
This is called federated blockchain, Consortium Blockchain is managed by multiple entities instead of a single one. The Consortium Blockchain system has solved this problem, which applies only to one entity for the network like in private blockchain.
5. Permission less Blockchain
Permission blockchain is open to anyone to join at any time. This is such a case in which all public blockchains are being created, where all the users are having open participation. The permission blockchain network is fully decentralized.
6. Permissioned Blockchain
Such a blockchain system is called a Permissioned blockchain in which there is no limit on the number of users. What is the number of participants who participate or engage in certain transactions or are identified by the controlling entity of the blockchain network?
What is Cryptocurrency?
Cryptocurrency is a way to exchange secured by the encryption of crypto-transaction or new unit’s transactions are controlled. In other words, cryptocurrency is digital money with a market value similar to other popular currencies. Bitcoin was the first cryptocurrency, which covered the way for many more.
Cryptocurrency is used to store records of crypto transactions on a blockchain-based database. These allow secure transactions without the need for middlemen such as banks or other central routes. Hence, cryptocurrency is just a blockchain technology with many applications.
Examples of Cryptocurrency
1. Bitcoin (BTC)
Bitcoin is the world’s first cryptocurrency, its beginning dates back to the white paper published in 2008 and is considered the best type of crypto, it functions on its blockchain, with transactions verified by the army of decentralized diggers.
2. Bitcoin Cash BCH)
Bitcoin Cash (BCH) is a cryptocurrency created by hard forking Bitcoin in 2017. Bitcoin cash shares the fundamental principles of Bitcoin with Bitcoin but operates on its blockchain, or follows a different development path.
3. Ether (ETH)
This is a similar cryptocurrency that runs on the Ethereum blockchain. Like bitcoin, ether operates on its blockchain, but compared to bitcoin, ether is unlimited, which means an infinite number of coins can abstractly be created. Ethereum supports small contracts. Ethereum blockchain automatically executes when certain conditions are met.
4. Binance coin (BNB)
Bitcoin is primitive to Binance, the world’s largest cryptocurrency exchange as of 2024. BNB users are expected to avoid paying this exchange’s transaction fee. This encourages the approval of the Binance coin. Which created crypto coins from this market.
5. Tether (USDT)
Tether is a type of stablecoin, designed to have a fixed price by being linked to an external resource. In this case, every coin promoted an equal number of US dollars.
6. Solana (SOL)
SOL is the native coin of the Solana platform, which operates on blockchain systems, just like Ethereum or Bitcoin. Solana network can perform a massive 50,000 transactions per second, making the platform attractive to investors who want to trade quickly.
FAQ’s
Blockchain and cryptocurrency are closely related concepts, but they aren’t the same. Blockchain is a digital medium of exchange and the underlying concept behind the functionality of cryptocurrency.
Yes, you can invest in Blockchain without investing in Cryptocurrency. Some ways are investing in public companies that are involved in blockchain, participating in crowdfunding a new cryptocurrency through ICO, or buying an exchange-traded fund (ETF).
Any blockchain network that is not owned by a corporate entity is likely decentralized
