Crypto for Beginners: Blockchain Vs. Cryptocurrency

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few skeptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. In this piece, we will be discussing the difference between two aspects within cryptocurrency that are commonly yet incorrectly used as synonymous terms: Blockchain and Crypto.

What is Blockchain Technology

Blockchain is a decentralized technology that records and runs cryptocurrency transactions. The blockchain in and of itself doesn’t have any intrinsic value; rather it hosts cryptocurrencies, which do. Furthermore, since blockchains are a decentralized technology, they are non-transferable. Blockchains can also be used for various other purposes, such as information storage.

One of the most important aspects of a blockchain is that the data entered is immutable, meaning every recorded transaction is irreversible. For blockchains used in crypto, this means that all the completed transactions are permanently recorded and viewable by anyone.

The decentralized aspect of the blockchain is equally important. This means that no one individual has full control over a blockchain. Instead, all the users of a blockchain retain collective control. The only hierarchy to speak of on a blockchain such as the Bitcoin blockchain, is directly correlated to how much of the blockchains native asset is in one’s possession. Using Bitcoin as an example once more, the individuals who hold the most Bitcoin, retain the most control, but this control only extends as far as their ability to affect the selling pressure. AKA they can lower the price of an asset by selling large amounts of the asset in question, but that’s about it.

How a Blockchain Works

A blockchain is a database that is distributed and shared across the nodes of a computer network. The big difference between a blockchain and a traditional database has to do with the way the data is structured. Traditional database’s structure their data in tables, while a blockchain structures it’s data in blocks. These blocks have a set storage capacity. When the storage capacity of a block is filled, the block is closed, and connected to the previously filled and closed block. At this point, a new block is opened, and the process repeats itself.

What is Cryptocurrency

Cryptocurrencies are virtual currencies which are secured by cryptography. More often than not, cryptocurrency exists on blockchains, which is why blockchain and crypto tend to get mixed up by the uninformed. Cryptocurrencies don’t always have to exist on blockchains, which may come as a surprise to some of you who are new to crypto. There are projects such as NANO (NANO) which utilizes directed acyclic graph technology (DAG) in which no blockchain is necessary.

One of the most important aspects of cryptocurrency is that many of them are not issued by any central authority. This feature allows most cryptocurrencies to theoretically remain immune to government interference or manipulation. Having forms of currency which belong to the people and not the worlds governments is one of the most attractive components behind cryptocurrency for many of its users.

Conclusion

There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies, you can graduate from using the Killer Whale Free Strategy to services such as Killer Whale Elite Signals sooner than you know it!

“Fortune favors the bold”

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