What is the difference between blockchains and cryptocurrency?

A blockchain is a distributed database system, or ledger, that enables an online list of transactions. Distributed ledger technology is another name for blockchain technology. A cryptocurrency is a digital asset that can be stored ona blockchain. To be clear, you can have a blockchain that does not issue any cryptocurrency. They are — for all intents and purposes — two separate things.

Why are blockchains popular?

Blockchains are known for their decentralized, immutable, and censorship resistant properties. This makes them popular for recording transaction data. As opposed to centralized ledgers or bookkeeping, wherein records can be altered, blockchains can not.

Why are blockchains decentralized?

Blockchains became famous for their ability to securely decentralize the issuance of currency. The problem with centralized currency issuance is that the issuer can arbitrarily print more currency units, which causes its value to plummet. This is known as inflation.

How are blockchains censorship resistant?

Because blockchains are distributed globally, and anyone can maintain the record of transactions (i.e., blockchain), no one can be denied access to the ledger. This means that if one or many nodes go offline, the network can still function. It also means that users can verify transaction information for themselves.

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The Beginners Guide To Blockchain

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