Introduction
Blockchain is a system of recording transactions digitally across many computers. It is decentralized, secured and transparent way to record data. On the other hand, cryptocurrency refers to virtual currency that uses blockchain technology to record transactions. It is not redeemable because it lacks physical form and exists in digital form. People often use blockchain and cryptocurrency interchangeably because these are closely related, But there are some differences between these terms which are discussed in this post.
What Is The Difference Between Blockchain And Cryptocurrency ?
The main dissimilarities or difference between blockchain and cryptocurrency can be explained as follows:
1. Meaning
Blockchain: It is a digital ledger used to store or record transactions and data in secure and transparent way
Cryptocurrency: It is type of digital currency used to make transaction using blockchain system
2. What Is It ?
Blockchain: It is a technology that records data and transactions
Cryptocurrency: It is a medium of exchange that uses cryptographic system to make transaction
3. Monetary Value
Blockchain: It has no monetary value because it only records the transactions
Cryptocurrency: It has monetary value because it is a currency
4. Scope
Blockchain: Scope of blockchain technology is wider than of cryptocurrency because it can be used in different field such as healthcare, finance, supply chain management etc.
Cryptocurrency: It has limited scope because it is used for digital payment only.
5. Existence
Blockchain: Private blockchain can exist without cryptocurrency because it does not rely on cryptocurrency
Cryptocurrency: Cryptocurrency relies on blockchain so it cannot exist without blockchain system
Also read:
Advantages and disadvantages of cryptocurrency
Traditional currency Vs. Cryptocurrency
6. Examples
Blockchain: Hyperledger Fabric, IBM Blockchain, Corda etc. are some examples of blokchain
Cryptocurrency: Bitcoin, Tether, Litecoin, Solana etc.are some examples of cryptocurrency
Blockchain Vs Cryptocurrency (Comparison Table)
|
Basis |
Blockchain |
Cryptocurrency |
|
Refers To |
Digital technology |
Medium of exchange |
|
Scope |
Broader |
Narrower |
|
Monetary Value |
No |
Yes |
|
Rely On |
Does not rely on cryptocurrency |
Relies on blokchain |
|
Examples |
Corda, hyperledger etc. |
Bitcoin, Solana etc. |
