Blockchain And Cryptocurrency 101

A blockchain is a digital ledger of transactions(data) that is duplicated & distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions & every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger & the record cannot be altered retroactively without the alteration of all subsequent blocks & the consensus of the network. The decentralized database managed by multiple participants is known as a distributed ledger. It was originally developed as the technology underlying the digital currency Bitcoin but has since been adopted for a wide variety of use cases.

One of the key features of blockchain technology is its ability to allow multiple parties to maintain a shared database without the need for a central authority. Instead, all participants in the network have access to the same information, and any changes to the database must be approved by consensus. This makes blockchain well-suited for use cases where transparency & security are the important aspects.

The most exciting use case of blockchain technology is in the area of financial services & supply chain.

• In Finacial services , blockchain could enable the creation of new types of financial instruments, such as smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Smart contracts could enable a wide variety of new business models, such as decentralized exchanges, prediction markets, etc.
• In supply chain management, where it can be used to track the movement of goods through the supply chain in real-time, providing transparency & reducing the risk of fraud. Blockchain technology can also help to ensure that products are authentic & have not been tampered with.

A cryptocurrency is a form of digital or virtual currency that uses cryptography for security. Cryptocurrencies are built on top of blockchain technology. They use blockchain to record transactions & control the creation of new units. Bitcoin, the first and most widely used cryptocurrency, was created in 2009. Since then, thousands of different cryptocurrencies have been created.

Cryptocurrency has several potential use cases, including:

• Digital payments: Cryptocurrencies can be used to make digital payments, similar to how one might use a credit card, e-wallet, etc. They are borderless, so they can be sent and received anywhere in the world with an internet connection.
• Store of value: Cryptocurrencies, like bitcoin, are decentralized and their supply is limited, which makes them attractive as a store of value.

Decentralized finance (Defi): Cryptocurrency can also be used to create decentralized financial systems, which operate independently of traditional financial institutions. Defi platforms allow for lending, borrowing, trading, and other financial services to be done on the blockchain.

In summary, Blockchain is the technology that enables the existence of cryptocurrency. Blockchain is a decentralized and distributed digital ledger & Cryptocurrency is the digital or virtual token that utilizes the technology of blockchain for secure transactions.