Blockchain vs Cryptocurrency
Sometimes the words blockchain and cryptocurrency are used interchangeably. There are crucial differences.
Blockchain is a way to organize data and affect the governance of behavior within the network.
Cryptocurrencies are digital asset or currency units; fixed or inflationary.
Blockchain
Blockchain is used to create a digital ledger. It is used to execute smart contracts or create programmable money, programmable escrow, and even more groundbreaking methods to declare and track ownership of digital and intellectual property.
The emphasis on smart contracts and code execution are the hallmarks of other blockchain projects like Ethereum.
How a network’s resources are allocated for a blockchain depends on the protocols in use by the network.
Many developer teams like Polkadot, Cardano, and Ethereum will continue to develop interesting solutions for use-cases as the ecosystems and their economies evolve.
More recently, digital rights management via non-fungible tokens or NFT is a sector quietly building potential to disrupt licensing and digital rights management.
Decentralized Finance or Defi Apps have continue to build out these blockchains, and are pushing the boundaries of how money and assets can be utilized.
The need for ownership verification of digital goods for things not acting as currency like artwork and music will change the landscape of several industries relying on outdated practices.
This characteristic of “provable scarcity”, something Bitcoin shares with many other blockchain networks, is the breakthrough for the licensing of intellectual property.
Cryptocurrency
A good cryptoasset like Bitcoin and soon Ethereum hold will always hold value due to the security of ownership and the immutable ledger provided by their network. How cryptocurrencies differ from one another is for a different discussion. In short, some have privacy features, some have a larger supply, or other economic mechanics.
Conclusion
The uniquely revolutionary prospect of programmable money on blockchain is exciting, though the real innovations in smart contracts, NFT, and Defi remain to be explored.