Lately, the terms blockchain and crypto (cryptocurrency) are familiar to the public and are even more popular. Blockchain and crypto are evidence of the rapid development of digital technology. However, many still do not understand or misinterpret the two terms. Actually, what is blockchain and crypto? And what is the difference between the two?
Blockchain
Although considered a modern technology, Scott’s initial idea of blockchain was sparked in 1991 in his journal entitled Journal of Cryptography: How to Time-Stamp a Digital Document. Blockchain is a technology developed as a digital data storage system connected through cryptography. Blockchain is a system that provides encryption for transaction records.
In 2008, Satoshi Nakamoto conceptualized blockchain in computers for the first time. Blockchain is a recording system for transactions on the network or called a distributed ledger. Because it is decentralized, blockchain can record transaction history in a secure, transparent, and efficient system. It is what makes blockchain widely used for digital transactions.
Blockchain is a method for securely storing data, so the potential for its use is vast. Currently, blockchain is indeed the most widely used cryptocurrency. However, blockchain is also widely used to create smart contract mechanisms, play-to-earn games, decentralized finance, supply monitoring, etc.
Cryptocurrency
We already know that blockchain is the technology behind cryptocurrencies. Cryptocurrencies function as a medium of exchange through computer networks that do not depend on any central authority to store or maintain them.
Utilizing decentralized blockchain technology, cryptocurrency is not dependent on any particular financial authority. The crypto owner and the asset’s amount, when it was received and transferred to whom, are all recorded in a blockchain spread across a worldwide network.
One cannot claim or take someone else’s money unless it has been validated by the entire network using cryptography. To manage crypto assets, users must have an application called a wallet. The user will get a public key as an identity or address from his wallet and get a private key as a key to open his wallet.
Currently, there are a lot of cryptocurrencies spread all over the world, and they will increase in the future. One of them is VEX, which is the cryptocurrency of the Vexanium blockchain. Users can manage their VEX using the Vex Wallet application, which is available in various versions based on the device used. Known as a third-generation blockchain protocol, Vexanium was born to support Decentralized Applications (DApps), Decentralized Finance (DeFi), and many other real use cases.
Blockchain and cryptocurrency have different meanings, but they are closely related. Cryptocurrencies rely heavily on blockchain technology, which is why cryptocurrency mechanisms use different encryption than usual.
Blockchain enforces a decentralized encryption system. Everyone in the same network can access the recorded transactions list. Blockchain provides transparency to the history of various types of transactions.