Link Between Blockchain and Cryptocurrency
When a new investor enters the world of cryptocurrency, they often use two terms mentioned together. These two terms are cryptocurrencies and blockchain. The two terms are used together so often that it gives many investors the idea that they both mean the same thing. This is particularly true if the investors are not tech-savvy. In this article, we will have a closer look to understand what the terms blockchain and cryptocurrency mean and how they are related to each other.
Blockchain is the Foundation for Cryptocurrency
It is common for investors to assume that blockchain and cryptocurrency are the same thing because both these terms became popular at the same time. However, the fact of the matter is that cryptocurrencies have only made blockchain popular. Blockchain technology has existed for a significant amount of time. However, it was not widely used. The blockchain is the very foundation on which cryptocurrencies are standing. If the blockchain ceases to exist, there would not be any cryptocurrencies. However, if cryptocurrencies cease to exist, blockchain technology could still be put to use in other sectors.
How Blockchain Works?
Blockchain is a way of digitally managing data in a decentralized format. The two keywords are digitally and decentralized. The working of a blockchain is described below:
Why Blockchain is the Foundation for Cryptocurrencies?
To sum it up, blockchain and cryptocurrencies are two related but different concepts. Cryptocurrency is by far the biggest application of the blockchain concept. However, it is not the only application by any means. On the other hand, the success of cryptocurrencies has ensured that blockchain is shot to fame after existing for many years in digital obscurity.
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