There is a unique relationship between cryptocurrency and Blockchain, reaching a level of dependency. Through time, matters have escalated further and people seem to be letting in on the same. With demand for cryptocurrency being on a high note, one knows how much Blockchain fills up the rest of the cup. Understanding this relationship will give you the right idea about what’s in store for you if you are planning on investing. But for that purpose, you need to know a lot more and consider risks until the very end. Hence, to help you out, here’s our take on the relationship between Blockchain and Cryptocurrency.
The level of dependency tends to start from cryptocurrency and ends with Blockchain. But that does go vice versa because Blockchain can survive without cryptocurrency. In other words, Blockchain is the technology that powers cryptocurrency by enabling transactions and a set of additional features to take place. When you purchase cryptocurrencies like Bitcoin, they tend to get completed with Blockchain and that’s how everything works. Going further, one also needs to note that there are other types of cryptocurrencies that run on Blockchain. This also goes to prove that if anything goes wrong with the blockchain algorithm, then matters would be hitting a downfall for cryptocurrency. Apart from that, the technology of Blockchain has also known to power other types of uses and purposes. Hence, in terms of relevance, Blockchain might be around the corner for a long time.
The Very First
Do you want to know what makes this relationship all the more special? Well, the answer to that starts from the existence. Cryptocurrency is the first application that went ahead to utilise Blockchain. This particular move was a calculated one, and it moved on to become a win-win situation. For cryptocurrency investors, they were introduced to a world that is independent and not driven by government forces. On the other hand, Blockchain got the right start and emerged as a technology that can be utilised for all the right reasons. In this manner, it is quite essential to note down all about these concepts and how they make the field even.
The introduction of cryptocurrency and Blockchain together was the right move for a whole bunch of reasons. Although it happened years ago, its effects are still visible and enriches people with their vast set of uses. Understanding this relationship will help you in on this part of the world. It also makes you question about its basis of legality. The fact of being transparent does reek of individual control but does it also reek of regulation? Well, that is another debate altogether with pros and cons coming from each direction.