Blockchain and cryptocurrency are often mentioned together, but they are not the same thing. This article provides a clear overview of how they differ, how they work, and why they matter in today’s digital economy. Understanding the distinction between the two helps businesses, investors, and everyday users make smarter decisions when dealing with digital assets and decentralized technology.
What Is Blockchain?
Blockchain is a decentralized digital ledger that records data across a network of computers. It stores information in blocks that are linked together, making the data transparent, secure, and nearly impossible to alter. Blockchain technology can be used in many industries, including finance, healthcare, supply chain, and digital identity verification.
What Is Cryptocurrency?
Cryptocurrency is a type of digital currency that runs on blockchain technology. It is designed to be used as a medium of exchange, similar to money, but without a central authority like a bank. Popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin. They can be traded, invested in, or used for online payments.
Key Differences Between Blockchain and Cryptocurrency
Blockchain is the technology, while cryptocurrency is one of its applications. Not all blockchains support cryptocurrencies, but all cryptocurrencies rely on blockchain to operate.
In conclusion, blockchain provides the foundation, and cryptocurrency is one of the products built on it. Understanding both helps users take advantage of future digital innovations.
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