BLOCKCHAIN AND CRYPTOCURRENCY: WHAT'S THE DIFFERENCE
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BLOCKCHAIN AND CRYPTOCURRENCY: WHAT'S THE DIFFERENCE

By SiliconIndia   |   Thursday, 05 April 2018, 09:56 Hrs
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The crypto-craze has hit fever pitch! Pretty much everyone from your next-door neighbour to late night TV show hosts are now talking about cryptos. However, the blockchain technology is also getting popular. With every tech (and some non-tech) firms looking forward to join the blockchain movement, there’s a significant buzz around these two words. However, while everyone is talking about cryptocurrencies and blockchain - many people are still confused about the two technologies.



Let us take a closer look at the various cryptocurrencies as well as the blockchain technology and understand what makes them special, as well as the difference between the two.



Cryptocurrencies are based on the Blockchain technology. Blockchain is the technology while Cryptocurrencies are a product of that technology.



Understanding the Blockchain



A blockchain system is basically what it sounds like. A set of blocks chained together. Each of these ‘blocks’ carries information, which is linked to each other, forming a giant database of information. However, information stored on a blockchain cannot be tampered or altered once it is verified and stored. This data can be anything ranging from details of financial transaction to data related to governance or the results of an election poll.



Blockchain systems, technically speaking, are ‘open, distributed ledgers’. Basically, they can be accessed by anyone and the data stored on them is public. Instead of having one central authority store the data, the data is stored with all the parties involved in the transactions. It is a transparent and tamper proof technology, which is finding its way into finance and governance, as well as a number of other industries.



Understanding Cryptocurrencies



Cryptocurrencies are a buzzword everyone is talking about! These are tokens of digital payments which operate upon the blockchain network. Each cryptocurrency runs on their respective blockchain. Bitcoins, for example, are a token that operate on the Bitcoin blockchain. Cryptocurrencies are a digital form of money which is used to make transactions over the blockchain network. Instead of fiat money that goes from bank to bank - cryptocurrency transactions happen over the blockchain network from one wallet to the other!



Cryptocurrency transactions need to be verified by miners. Upon the verification of a transaction, details are recorded on a block on the blockchain, which is given a unique identifier and once the block is full with records (imagine it to be a page of a ledger), it is linked to another block along with the unique identifiers of all the other blocks that have existed. This is what makes the blockchain network incorruptible and secure.



There are over 1500 cryptocurrencies at the moment. Sometimes, it becomes hard to stay updated with all the price updates and information regarding cryptocurrencies. However, platforms such as CryptoCoinJudge help provide all the relevant data in one place. The website provides details and reviews about cryptocurrencies and various coins in detail on their platform - a must visit for anyone looking forward to stay up-to- date with the markets.



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