Understand how cryptocurrency & blockchain works
You must have been hearing words like cryptocurrency, Bitcoin, blockchain, digital money and etc a lot lately. Do not let the most hyped up terms stay alien to you. Cryptocurrency is virtual money. To explain it better it is a digital form of currency that exists only on the virtual world. It is a digital asset and presently the most popular and successful one. The first cryptocurrency began with the launch of Bitcoin in 2009 and ever since we have seen a massive wave in the field of cryptocurrency.
Cryptocurrency operates without any governance or centralization. It is a decentralized network which enables everyone to share and transfer cryptocurrency funds instantly. So you buy cryptocurrency through different exchanges and mediums. Then these can be traded and further used to buy things. As of now most people use cryptocurrency as a medium of investment. This digital asset has greater value than that of gold or any other piece of jewellery.
Understanding blockchain is pretty simple actually. Blockchain is the encryption method which allows you to transfer cryptocurrencies. Cryptocurrencies, as stated earlier are not like fiat currencies. They are completely different from that. Let us take an example where you buy cryptocurrency; if you buy ethereum and decide to trade it with some other cryptocurrency then blockchain is the secure system that it passes through.
Blockchain also enables to keep the identity of the users anonymous. So if you buy ethereum or some other cryptocurrency too your details are kept a secret. No one will be able to know it is you. Blockchain system makes the entire transactional journey a smooth ride. Blockchain was often mistaken for cryptocurrency initially. Bitcoin being the first ever cryptocurrency has initiated most of the things which we associate with cryptocurrency for that matter of fact.
In addition to that, cryptocurrency has seen more than 3000% increase over the past year. Such a massive growth definitely ensures a brighter future for this cryptocurrency.
On top of that, cryptocurrency exchanges utilize the blockchain technology for various security reasons. Blockchain creates unique IDs with configuration details. Therefore it is impossible for anyone to hack or steal your funds. There is no way that you being anonymous under such a webbed protection can be hacked.
The confusion between cryptocurrency and blockchain has been hopefully eradicated for you. Cryptocurrency is the digital currency and blockchain is the technology that is used to transfer money and cryptos all across the internet.
