by Hodler Ash 
How to Learn about Blockchain And Cryptocurrency ?
These are the main points to discuss in crypto which have created a lot of confusion in the minds of people. Blockchain and Cryptocurrency are two different things.
Here we will try to understand What is the difference between Blockchain and Cryptocurrency but first, we will know the meaning of Blockchain and Cryptocurrency to have better understanding of it.
What Is Blockchain ?
Blockchain is a list of records that are called blocks. These blocks are linked with the help of cryptography. Each block is a collection of data in Blockchain.
Blockchain is transparent in nature, and it is visible to every individual. There is no central authority in Blockchain.
What Is Cryptocurrency ?
Cryptocurrency is a decentralized and encrypted digital currency that is transferred between peers. Cryptocurrency has grown a lot after the price rise in bitcoin that occurred last year. People consider Cryptocurrency to be an amazing thing for investment.
Many people have a question about how to learn about Blockchain and Cryptocurrency. The simple answer to this question is that there are several courses as well as tutorials available on the internet to know more about Blockchain and Cryptocurrency. Every individual could learn more about these topics with the help of internet.
How Cryptocurrency Works ?
( Working Of Cryptocurrency )
Cryptocurrency has been obtained by the invention of Satoshi Nakamoto which is the unknown inventor of Bitcoin. Bitcoin is the most important Cryptocurrency to date. Satoshi had declared that he made a peer-to-peer cash system.
Every digital cash system needs a payment network that has the details of accounts, transactions, and all the balances. The problem with this system is about double-spending. One entity has to spend twice the same amount. This occurs when there is a central server which keeps the record of the balances.
When it comes to a decentralized network, there is no central server. Every single entity which is included in the network has to do the job. Every peer which is present in the network has a list of all the transactions for checking if the future transactions are valid or are it an attempt to double spend.
Cryptocurrency is a very wide concept, and there are various cryptocurrencies available in the market. Some of the famous cryptocurrencies are Bitcoin, Litecoin, Ethereum, Zcash, and Dash. Out of all the cryptocurrencies, Bitcoin is the most famous, and it has gained a lot of fame due to its price rise. Above mentioned is how Cryptocurrency works.
What Is The Mining Of Cryptocurrency ?
The person who does the work of mining Cryptocurrency is a miner. The miner has to perform the task of finding a hash which is a product of the cryptographic function which connects the new block with its predecessor. The miners have to solve this cryptographic puzzle, and after they find a solution, they can build a block and after that add it into the Blockchain.
How To Trade Cryptocurrencies ?
Cryptocurrencies have been viewed as an amazing thing for investment. In reality, cryptocurrencies are high-risk investments, and people should have solid knowledge before investing into it.
The trading concept of Cryptocurrency is similar to the trading of stocks. The main aim is to acquire a Cryptocurrency while its price is in a dip. The major difference between the trading of cryptocurrencies and trading of stocks is that stocks are bought with the help of regular currency like dollars, euros, and rupees while the cryptocurrencies are bought with the help of bitcoin or ethereum. An investor has to purchase bitcoins from a bitcoin broker, and then that person can use it.
The value of Cryptocurrency depends upon various factors.
- Demand and Supply.
- The fluctuation of prices of Bitcoin.
- The resources required for the validation of transactions.
- The level of difficulty.
- The perception of the public.
- The utility of product or currency.
These are some of the factors which should be kept in mind before investing in Cryptocurrencies. One should do proper research before investing in Cryptocurrency.
What Is The Difference Between Cryptocurrency And Blockchain ?
Whenever we talk about Blockchain and Cryptocurrency, then people think that it is the same thing because bitcoin was the first application of Blockchain.
Let us try to understand the blockchain and Cryptocurrency difference with the help of a simple real-time example.
Imagine that you are entering a casino. After entering the casino, you go to the cashier and exchange your cash for chips. Every casino uses chips as a currency for playing. The players have to buy chips with the help of cash in order to take part in the different games of the casino. These chips are used in the casino for gambling, but when you leave the casino, these chips do not possess any legitimate power of purchasing anything in the market.
This was a simple example in which the chips used in the casino are the cryptocurrencies, and the casino is the blockchain network. The blockchain network provides an ecosystem of participants and thus puts coins into play, which allows it to get transacted. This is considered to be the basic difference between Blockchain and Cryptocurrency.
- Blockchain is the platform that has brought the cryptocurrencies into play. Blockchain is the technology which serves as a distributed ledger, and that forms a network. This network which is created is used for transacting, and it also enables transferring of information and value.
- Cryptocurrencies are the tokens which are used in these networks to pay for these transactions and also send value. Cryptocurrencies can be used as a tool on Blockchain, and it also serves as a utility or resource function. Most of the times, they are used for digitizing the value of an asset.
- Blockchain is a technology of which Cryptocurrency is a part. Cryptocurrency is essential for making transactions on Blockchain. Blockchain is the means of recording these transactions.
- Cryptocurrency is less flexible, and it focuses more on lowering the cost of the influencers as well as reducing the time of the transactions while Blockchain is adaptive, and it can be adapted to any change. Due to this reason, Blockchain can be used in various industries.
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