Difference between blockchain and cryptocurrency

Cryptocurrency and blockchain are related concepts, but they serve different purposes and have distinct characteristics.
Blockchain:

1. Definition: Blockchain is a decentralized and distributed ledger technology that records transactions across a network of computers.
2. Function: It serves as a secure and transparent way to record and verify transactions without the need for a central authority.
   • Features:Consensus Mechanism: Blockchain relies on a consensus mechanism to agree on the validity of transactions.
   • Immutability: Once data is added to the blockchain, it is extremely difficult to alter, ensuring data integrity.
   • Transparency: Transactions are visible to all participants in the network.
   • Decentralization: No single entity has control over the entire blockchain network.

Cryptocurrency:

1. Definition: Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on a decentralized network, often utilizing blockchain technology.
2. Function: It is a medium of exchange, enabling secure and pseudonymous financial transactions.
   • Features:Decentralization: Cryptocurrencies operate on decentralized networks, typically powered by blockchain.
   • Anonymity: Transactions can be conducted with a degree of privacy, providing pseudonymity to users.
   • Digital Nature: Cryptocurrencies exist purely in digital form and have no physical counterparts.
   • Limited Supply: Many cryptocurrencies, like Bitcoin, have a capped supply to control inflation.

Key Difference:

• Scope: Blockchain is a broader technology that can be applied beyond cryptocurrencies, including supply chain management, voting systems, and more. Cryptocurrency is a specific application of blockchain technology.
• Purpose: Blockchain serves as a decentralized and tamper-resistant ledger technology. Cryptocurrency primarily serves as a digital currency facilitating secure and decentralized financial transactions.

In summary, blockchain is the underlying technology, and cryptocurrency is one of the applications built upon it. While blockchain has diverse use cases, cryptocurrencies leverage blockchain to enable secure and decentralized digital transactions.