Blockchain (Part 05) : Relation between Crypto and Blockchain

Sometimes people combine blockchain with cryptocurrency. In fact, there is a gulf of difference between these two. We try to relate Blockchain, Decentralisation and Cryptocurrency in same platform. So far, we have cryptocurrency always backed by decentralisation and blockchain network but there may have Cryptography without blockchain network. We have experience of blockchain without cryptocurrency and centralisation in the blockchain technology as well. Decentralization is the demanable feature of blockchain but they are not always related to cryptocurrency.

Basically, Blockchain is a technology of recording data having some features of data security, free from tempering but it can be centralised as well. In blockchain, we can have some update features compared to general technology of data recording and server maintenance. In normal server, in case of any hack or crash all users will be affected from using that server data but here in blockchain technology it is not possible as it is distributed to many computers in several parts of the world.

Digital asset or currency has to be protected from centralized authority and that's why cryptocurrency come into existence based on the decentralized feature of blockchain. Normally, it's a digital asset. Its network is distributed to large number of computers so there is not control of central body which making it trustworthy to mass people. Cryptocurrency is one kind of digital asset or virtual currency where security is maintained by Cryptography.

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.Source

A blockchain is a distributed database that is shared among the nodes of a computer network.Source

For the nature of Decentralization, these two terms are interrelated. Both are different. Suppose, we have a basic operating system on our mobile phone or computer such as Android on mobile and Windows on computer. Many applications or softwares can be created and used using operating systems. In the same way, blockchain technology can be considered as foundation or operating system, then thousands of cryptocurrencies or digital currencies can be created based on that foundation or technology.

Digital currency or cryptocurrency is not always what we call blockchain based. Blockchain is the name of a technology where cypto is a financial asset or currency. Blockchain technology can be used for various purposes. With this technology it is possible to do any work related to financial security and decentralization. Blockchain can widely be used in centralized system as well to increase their own data security and server maintenance.

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