Have you heard the term blockchain and crypto currencies used around lately and now you're wondering what are these?. Blockchains and crypto go hand in hand with one another but they do have some big differences.
Blockchain developed from chain of blocks and cryptocurrency is a cryptographic currency but the fundamental difference between these two concepts has to do with how distributed ledger technology is used.
What is a blockchain?
A blockchain is a distributed ledger technology that forms a chain of blocks. Each block includes information and data that are bundled together and verified. These blocks are then validated and strung onto the chain of transactions and information in previous blocks. These blocks of transactions are permanently recorded into the distributed ledger that is the blockchain. A simple explanation of blockchain is a chain of information
held over a distributed network with a timestamp that cannot be altered once it's been recorded.
What is cryptocurrency?
Cryptocurrency can be seen as a tool or resource on a blockchain network. It is a token based on a distributed ledger. Cryptocurrency is a digital currency formed on the basis of cryptography or by definition the art of solving or writing codes.
Blockchain technology and the cryptocurrency are referred to by the same name this is the case with Bitcoin.
In summary, blockchain is the platform which brings cryptocurrency into play. Blockchain is the technology that serves as a distributed ledger that forms the network. This network creates the means for transacting and enables transferring of value and information. Cryptocurrencies are the tokens used within these networks to send value and pay for these transactions. Crypto is often necessary to transact on a blockchain but without the blockchain we would not have a means for these transactions to be recorded.