Blockchain and cryptocurrencies are both parts of the ever-expanding universe of cryptographically managed and secured systems, but while they are often used in interchangeable terms, they are not the same thing.
- Cryptocurrency is (typically) a blockchain-based application that focuses on the exchange of value.
- Bitcoin is the first, but because it is the most popular way to use blockchain, it faces a lot of competition.
- There are numerous varieties of cryptocurrencies, ranging from anonymous “privacy coins” to coins earned by blogging or watching advertisements.
- It’s just a safe way to retain records. You can put whatever on a blockchain if you can conceive by writing it down in a ledger.
- Blockchain powers the majority of cryptocurrencies, however blockchains do not need to be associated with a currency.
- Blockchain can be opened to the public (decentralized/permissionless), administered by a single entity (private), or run by a group of trusted entities (with permission).
- Blockchain technology has grown in popularity because it makes it simple to ensure that information is trustworthy and approved by numerous sources.