Often people use both the terminology of blockchain and cryptocurrency together and there comes the confusion of how the two are together yet separate in terms of the technology, existence and their use in the broader aspects, in the financial markets. The concepts are different but the relative use if both give the deadly combination which is in erasable and inked permanently.
When only a single cryptocurrency was there the terms were used interchangeably; however with any information stored in different blockchains, there became a necessity to differentiate and use it as a medium to store data, use for peer to peer communication, holding on blocks of information in a decentralized ledger form. Being a contrast to the technology the cryptocurrency became a currency bearing tool with a repository of information held in the blockchain ledger.
How different are they both?
- As we have the Ethereum Code as a software platform for the users to trade in the currency market, the underlying platform of the cryptocurrency is the result of using the blockchain technology
- the creation of the means to transact, transfer information, currency is done with the help of the technology-blockchain
- as a part of the ecosystem of currency, the cryptocurrencies have embedded technology which would not have been possible with the complex coding of the program to run this technology
- to digitize the value of an asset, to pay and use the facilities of any particular services in the cloud environment using this technology is the only way to record and store it in the virtual space, the automated trading robot uses the technology on a high speed to spot the accurate price matching trades and make profits
- the utility function of cryptocurrencies are high, which is only possible with the use of the technology which is highly complex but data, cannot be hacked by any means
The use of both the technology and the virtual environment of digital space have made it possible for all to transact, store, transfer information, currency with the help of technology which is highly complex and difficult to map. The emerging new data sciences have used the technology to build on more powerful and relatively fast programs to trade and win high payouts in the financial trading industry which was for many decades operated even manually.