Are blockchain and cryptocurrencies the same?

Asked 18-May-2022
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  • Blockchain is the technology that allows cryptocurrencies to exist (among other things). The most well-known cryptocurrency is Bitcoin, for which blockchain technology was created. A cryptocurrency, like the US dollar, is a digital means of exchange that uses encryption techniques to manage the creation of monetary units and verify the transfer of funds.
  • Blockchain and cryptocurrency are both immaterial. Cryptocurrencies are ethereal digital tokens that, unlike the US currency or the Indian rupee, cannot be physically held. The blockchains that are used to store cryptocurrencies are not housed in a single location or data centre.
  • Blockchain and cryptocurrency are both technological breakthroughs. Blockchain is the technology that underpins cryptocurrencies. Traditional databases are far less advanced and secure than blockchain. Physical or paper-based currencies are technologically inferior to cryptocurrencies.
  • Blockchain was created to keep track of bitcoin transactions, the world's first cryptocurrency. Blockchains are used to record transactions in all major cryptocurrencies. A bitcoin blockchain is created when someone purchases a new bitcoin.


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