Blockchain and cryptocurrency are terms you’ll often hear used together. While they are two distinctly different technologies, they are also inherently intertwined with one another.
Cryptocurrency operates through the blockchain, as it too is a decentralized, digital system. Defined as a digital or virtual currency, crypto uses cryptography for security and is not owned by any particular authority, making it difficult for governments to manipulate.
Bitcoin was the first cryptocurrency, but the list has subsequently mushroomed to more than 10,000. Blockchain technology was, in fact, popularized as the foundation for Bitcoin.
Despite many doubts and a lot of skepticism, both technologies have become an important part of our economic systems for the foreseeable future. Much has changed and advanced in recent years, but with the terms so closely aligned, a great deal of confusion still exists
What is the Relationship between blockchain and cryptocurrency?
Blockchain is a foundational feature of cryptocurrency, rather than being an optional technology. Finally, cryptocurrencies have fueled the growth and blockchain development, as crypto relies on its network to function. However, blockchain applications go beyond cryptocurrency.
The technology is not limited to the financial sector; it offers a variety of solutions that have already disrupted and will continue to disrupt various markets in the years ahead.
Because the first blockchain was the database on which every bitcoin (the first cryptocurrency) transaction was stored, the terms have become synonymous. Blockchain was not known as such when it was first implemented in 2009. It got its name from the way transactions were organized into blocks of data and then chained together using a mathematical function that generates a hash code.
The idea of a cryptographically secure chain of information blocks was conceived in 1982 and developed in the early 1990s, but it was this revolutionary original cryptocurrency that propelled the system to prominence.
The University of Cape Town (UCT) offers an online short course called Blockchain and Digital Currency: The Future of Money for those interested in learning more about cryptocurrency.
This six-week online short course will broaden your understanding of blockchain and cryptocurrency, as well as reveal how crypto assets will shape the financial industry’s future.
Innovative applications of blockchain
You don’t have to look far to find a list of creative uses for blockchain technology. Blockchain’s powerful, secure way of storing, verifying, and encrypting data is finding applications in a wide range of fields, including healthcare, real estate, government, and music.
Here are seven more blockchain applications, some of which are highlighted by cryptocurrencies:
The financial sector’s primary function is to store and transfer money from one entity to another. This necessitates the use of a reliable intermediary, such as a bank. By decentralizing transactions, blockchain has effectively eliminated the need for such intermediaries.
Transparency and security of blockchain-based payments are also improved by the ability to track all transactions. This is advantageous to both transaction parties and relevant regulators.
Smart contracts are self-executing programs that are triggered automatically when predetermined conditions are met, allowing the seller and buyer to directly negotiate terms of agreement.
The transactions are trackable, transparent, and irreversible because they are carried out on a blockchain network.
This type of automation can help businesses increase productivity while lowering costs.
Simply put, it allows you to exchange property, shares, legal documents, or anything else of value in a transparent and conflict-free manner while avoiding the costs of a middleman.
Because the network of nodes can cross-reference to locate the source of a disputed change. Data stored on blockchain is rendered tamper-proof, and the technology has a number of potential cybersecurity applications.
The risk of a hacker exploiting a single point of vulnerability is reduced when data is stored across a network of devices.
The storage of healthcare records has obvious applications for a decentralized, secure, and trustworthy blockchain system.
Personal health records (PHR) are primarily managed by patients and collect data from a variety of sources such as medical centers, devices, clinics, and pharmacies.
Doctors manage electronic health records (EHRs), which are digital records of patients’ medical histories.
The accuracy of PHR data is sometimes questioned by patients who manage them.
They would be traceable, transparent, unchangeable, auditable, and secure if they were stored on blockchains.
Blockchain could provide a solution, with EHRs stored securely on a decentralized system.
it can be accessed across systems and organizations by both patients and healthcare workers.
NFTs, or non-fungible tokens, are blockchain tokens that differ from cryptocurrencies in that they are one-of-a-kind digital assets
Although NFTs can technically represent ownership of anything, they are most commonly used to purchase and sell digital art.
An NFT gives you ownership of the work of art. Consider the distinction between owning an original painting and owning a print of it.
Career In Cryptocurrencies and blockchain
In 2028, the global spend on blockchain is expected to reach $104.9 billion.
Blockchain and cryptocurrencies are causing disruptions far beyond the financial services sector, as more start-ups and traditional institutions seize the momentum this technology provides.
The rate of technological advancement shows no signs of slowing.
While some are skeptical about the future of cryptocurrency, many see 2021 as a watershed year for their investment strategy.