Understanding Blockchain and Cryptocurrency
By Leila Kojouri
The popularity of Bitcoin and Blockchain has skyrocketed in the past few years. It seems every industry has expressed a lot of interest within the realm of blockchain, or cryptocurrency. What is cryptocurrency, you ask? Think Bitcoin. A common misconception is that Bitcoin is the only form of cryptocurrency. Bitcoin and blockchain are frequently used together and in many cases become practically interchangeable, leading to our confusion surrounding our understanding of digital currency.
Blockchain is in fact a digital ledger facilitating the numerous transactions involved in the creation of cryptocurrencies (like bitcoin). Additionally, in blockchain, thee exists documented, chronological records available to the public for transparency. It is important to understand that bitcoin is a product of the system involving blockchain infrastructure, however, both are mutually exclusive, separate entities. Bitcoin is simply a form of cryptocurrency, with blockchain as the the system with which these currencies are created.
Numerous technological components and concepts are at work in blockchain, used to make and manage multiple currencies. The difference between bitcoin and other cryptocurrencies can be illustrated in comparing bitcoin to real-life, paper-made dollars, bills, and banknotes – as depending on where you live, your currency may exist in dollars, euros, yuan, pesos, etc. Gauging recent trends in the realm of cryptocurrency, bitcoin is currently the most popular. Yet in our ever-changing tech landscape, bitcoin’s popularity may see a decline. Presently, companies may leverage their stocks or an uptick in economic value for the purpose of aligning with their cryptocurrencies. As such, we may see many more forms of this currency emerging with similar or higher value.