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Many beginners on “crypto world” have this confusion around what is the difference between blockchain and cryptocurrency.
Fundamental concept and difference between these concepts have to do with how distributed ledger technology is used.
Blockchain = “chain of blocks”
Before, when there was only Bitcoin there wasn’t a distinction between these terms and they were used interchangeably.
It’s a distributed ledger technology that forms a chain of blocks. Blocks include information and data that are bundled together and verified. The blocks of information of transactions as well as a timestamp are permanently recorded in this distributed ledger technology in other words it connects to the previous block- hence the name:block-chain
Cryptocurrency
Cryptocurrency is a sort of cryptographic currency, it has to do with the use of tokens based on the distributed ledger technology. They are essentially digital assets that can be sent on a peer to peer basis with no need for a central authority acting as a source of trust.
It’s a tool or resource on a blockchain network, it is a digital currency by definition “ the art of solving or writing codes”
These tokens can serve different purposes on the network and we all know that not all cryptocurrencies are created equal.
For example, in the case of Bitcoin it refers to the token and to the technology as well. While it is very different when dealing with other blockchain projects like Ethereum and Miusu, which are more than just digital forms of money
In this case, the technology (blockchain) is known as Miusu or Ethereum, but the native token is Miu or Ether, and the transactions are paid in gas.
How they work together?
Blockchain serve as the basis of technology, it is the platform which brings cryptocurrencies into play. The network such as Miusu creates the means for transacting and enable transferring of value and information.
While cryptocurrencies are the tokens used within these networks to send value and pay for these transactions. In some cases you can see them as a resource or utility function and others they are used to digitize value of an asset. They go hand in hand and crypto is often necessary to transact on a blockchain.
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