Before we go on to talk about the correlation that exists between all the cryptocurrency transactions that you make and blockchain, let us take a simple walk through the basic definitions that they have. Once we do that, in this blog we will talk about the link that exists between the same, and help you understand why it is necessary to take cognisance of both. Remember, neither of the two chosen areas can thrive in isolation!
What is Cryptocurrency?
While many are already aware of the definition of cryptocurrency, we dedicate this section to those who require a simple, crisp understanding of the same. Cryptocurrency happens to be the platform that enables people to make economic transactions without the mediation of a centralised force such as a bank. From a digital wallet that cryptocurrency offers, it is possible for its investors to make payments, receive the same, and invest in this area from any part of the world.
In short Cryptocurrency happens to be one of the most popular platforms, even though the fluctuation rates of its value bother its investors from time to time. We kid you not, increasingly, Cryptocurrency is coming to be known as one of the superpowers of the world, determining the fate of the global economy.
What is Blockchain?
While it is completely possible to make hassle free transactions using cryptocurrency, one has to keep in mind that behind it all is blockchain. In case you’re wondering about what blockchain actually is, the answer to the same is simple. To explain it in short, blockchain happens to be the decentralised force, the pillar behind all the necessary monetary transactions that work on the very acknowledged peer to peer basis. It is with the help of blockchain that all the necessary security threats can be prevented thereby making the digital money market a safer space for its consumers.
How do the Two Areas Work Together- A Made-Easy:
- The Interdependence Factor: In case you think that cryptocurrency, and blockchain are two different entities which are not dependent upon one another, it will be imperative for us to point out to you that blockchain is not an option that cryptocurrency has. It is not a choice, but a compulsion for Bitcoin and cryptocurrency to have to use the fundamental features that come with the development of the blockchain technology. These platforms are completely dependent upon the dynamism of the technology, and, at the end of the day, are conjoined via their route of commencement.
- The Two Aren’t the Same: It is rather important to understand that cryptocurrency and blockchain are not two similar things. If we have to go by definition, blocking surpasses the limits of cryptocurrencies, and extends beyond mere confines. In today’s time common blockchain is not only something that supports the digital money market, but also works as the problem-solving technology to the potential threats in the market.
- The Cybersecurity Factor: As much as you see Bitcoin and cryptocurrency making headlines about its immense reception in today’s, pandemic affected world, you will also notice that Bitcoin and cryptocurrency have had made substantial amount of headlines regarding the fraudulent activities that the platforms suffer from time and again. It is only in recent times that the blockchain technology is coming forward even better to strengthen the security issues, and give the investors a more secure space to process their economic transactions in. In this way, one could say that the security of cryptocurrency is completely dependent upon blockchain. By making possible the recording of transactions, it is prioritizing the transparency factor by all means. To find out more, you can consult about cryptocurrency investment factors
In this article, we tried to give you a fair share of ideas regarding cryptocurrency, blockchain, and how the two forces work together to present its consumers with more values. We sincerely hope this will help your understanding, good luck!