Cryptocurrency

and how it relates to blockchain technology

Cryptocurrency and blockchain technology are related but distinct concepts. Although the term “crypto” may evoke images of secrecy or “shadowy super coders,” the etymology of “cryptocurrency” is more innocuous. It refers to the use of cryptographic algorithms to secure blockchain networks that enable peer-to-peer trustless transactions.

Cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and control the creation of new units. Cryptocurrencies operate on blockchain technology and allow for peer-to-peer transactions without the need for intermediaries, such as banks or financial institutions.

Although cryptocurrency is an integral part of blockchain technology, blockchain has many applications beyond cryptocurrency, such as removing trust and friction in the finance system, supply chain management, voting systems, and more.

In summary, blockchain technology is the underlying infrastructure that powers cryptocurrencies and other decentralized applications, while cryptocurrency is a specific application of blockchain technology that enables peer-to-peer digital transactions without the need for intermediaries.

Put another way, all cryptocurrency is on a blockchain, but all blockchains are not cryptocurrency.