Understanding the differences between crypto and blockchain can be difficult at first as the two are often linked together. However, there are significant changes between the two that set them apart from one another. In this article, we will be providing you with insight into the differences between blockchain and crypto as well as how one cannot work without the other.
What Is Blockchain Technology?
Blockchain technology is a new invention that involves the grouping of a sequence of blocks in groups of transactions. These are then chained together and distributed between users. This type of technology can be implemented in numerous business sectors. However, it is most commonly associated with cryptocurrency as it acts as the driving force behind the currency. This is in part down to the software not relying on any external authority to validate a transaction; therefore, it can be integrated within any business model as a way to store information.
What Is Cryptocurrency?
Though the two are commonly linked to one another, it is important to note that cryptocurrency and blockchain are two completely separate things. A cryptocurrency is a token that is only activated when using blockchain technology as this sends the value of the token. Without the tool of blockchain, a cryptocurrency would just be seen as a token with no value. Due to a cryptocurrency being its own separate entity it can be implemented into a number of online entertainment options, such as games needing Bitcoin to be played. The value of the cryptocurrency is always based on the current value of the market.
What Is The Difference?
The main difference between crypto and blockchain is technology. Without blockchain technology working as the foundation, the platform that adds value to cryptocurrency would be non-existent. This, therefore, means that Blockchain is needed to enable the transferring of value for this online token in order to pay for items online as the value is transferred during the transaction process.
However, it is important to remember that blockchain technology is its own entity, therefore it can be used for storing information as well as streamlining international processes. Crypto, on the other hand, relies on blockchain technology in order to have value and work efficiently.
How Can Blockchain be Implemented Elsewhere
For example, blockchain technology and its ability to store information can be implemented across a number of different business sectors such as the healthcare sector, tourism and smarter supply chains as it can reduce the risk of human error and maintain a high level of security when it comes to personal information. When paired with a superfast internet connection a blockchain system can then begin to streamline the process and allow access to specific information through a designated hash.
With this in mind, the difference between crypto and blockchain is that one is a style of technology whilst the other is an online token that is used within a blockchain network in order to receive its current value.