Blockchain and Cryptocurrency: Know the Difference
One of the most common questions that comes to people’s minds is if Blockchain and Cryptocurrencies are the same thing or if they are different.
Bitcoin and Blockchain
Bitcoin and Blockchain are different things. While Bitcoin is the first ever cryptocurrency invented in 2008 by Satoshi Nakamoto, Blockchain is the technology behind Bitcoin. It can be said that Bitcoin is one of the first innovations of Blockchain. The launch of Bitcoin has been an attempt to create alternative cryptocurrencies that is controlled by a decentralized network of users and which is not directly subject to the laws of central banking authorities or governments, with additional benefits of faster transactions and lesser fees. The confusion between the two was created as the sudden growth of Bitcoin led people to start using the terms ‘Bitcoin’, and ‘Blockchain’ interchangeably.
Blockchain goes beyond cryptocurrency
Though the best-known example of blockchain technology is cryptocurrency Bitcoin, there are many more use cases ranging from real estate, food products, cars, logistics, and more. The global emerging technology enterprise Everledger developed the pioneering idea of how blockchain can play a role in preventing frauds in luxury goods. Blockchain modified use of Bitcoin to make systemic flaws less likely in the future. Wide ranges of sectors are being identified like banking and finance which could benefit from blockchain.
Meanwhile being the technology behind Bitcoin, blockchain carries a huge disparity from it, with several features, other than secure and regulated digital cash transactions.
Cyptocurriencies – alternative money?
Cryptocurrencies’ nature of being decentralized alternative money that can’t be controlled, making it unacceptable in many countries around the world, while the blockchain is an emerging technology which is rapidly evolving and touching different industries like logistics, education and health.