What Are the Differences Between Blockchain and Cryptocurrency?

Have you thought about blockchain and crypto as similar concepts? A lot of people tend to use both words interchangeably. However, as a cryptocurrency enthusiast, you need to understand that blockchain and crypto serve different purposes.

While cryptocurrency is a digital form of money mainly used for transactions, blockchains are not restricted to digital currencies alone. This post aims to point out the differences between blockchain and cryptocurrency.

What Is a Blockchain?

A blockchain is a modified database that keeps records of all transactions, including cryptocurrencies, electronically in digital form. It helps to secure decentralised records of transactions and saves a large amount of information stored in blocks. Simply put, a blockchain is a computer file that acts as a ledger to store data.

When the data is stored in the blockchain, it spreads across multiple computers to make it decentralised. Here is how a blockchain stores data. First, the block gathers information collectively depending on the capacity. Then, once a block gets filled with data and exhausts its storage limit, a chain links it to the rest of the filled blocks and creates a new block. This process forms the blockchain.

Because of its decentralised nature, blockchain users can make transactions without needing a central authority’s approval. One of the significant benefits of this storage system is that it ensures that records are safe.

Features of a Blockchain

Better capacity

One of the reasons blockchains are unique from other databases is that they have a more robust capacity to store data. In addition to this, blockchains have a strong network that links lots of computers together when sharing information.

Stronger security

Blockchains is an advanced technology because it secures data better than other storage platforms. Several computers guard the blockchain network using nodes to verify transactions on the web. In addition, it makes the best use of encryption and cryptography to create a firewall against security threats.


Blockchains are independent of governing authorities or a single person. Therefore, as a blockchain user, you can directly access the storage network to save or retrieve your data without the influence of a third party. All you need is the internet and the asset you want to store.


For a database to be effective, it must be immutable. Immutability means data found on the blockchain cannot be altered. Instead of blockchains to use a third party to protect the database in a centralised way, the immutability of the storage ensures that a collection of nodes keeps it secured.

What Is Cryptocurrency?

Cryptocurrency is a digital currency that has a market value. Its value allows you to buy and sell goods, services and properties. Furthermore, you can also store it for future investments. Examples of crypto include bitcoins, Ethereum and litecoins.

Like blockchains, crypto is not centralised, nor is it controlled or distributed by a central government. Instead, it is a free market of dealers that flow with the forces of demand and supply.

Features of Cryptocurrency

Monetary Value

Cryptocurrency has monetary value to purchase goods and services. It can also be transferred from one person to another like regular fiat currencies.


Unlike fiat currency that the central banks control and distribute, crypto assets are free from external control. When a transaction takes place using crypto, the process is done on an open network that no one owns. Nodes are a network of computers that verifies transactions online and securely.


Crypto dealers enjoy the benefit of anonymity, and it is almost impossible to trace people with deals. However, this feature is a challenge for some governments who feel the need to regulate how digital currency is used.

Differences Between Blockchain and Cryptocurrency

  • Blockchain is a database used for storage and distribution, while cryptocurrency is a digital currency that can be used for trading.
  • Blockchain can be used for other functions, including cryptocurrency, while cryptocurrency is powered by blockchain.
  • In addition, blockchain focuses on transparency which means that people on the database can view information, while cryptocurrency offers anonymity.
  • Blockchains transfer data of all kinds, while crypto transfers digital currency.
  • Finally, blockchain is not kept in a centralised place. However, it is distributed across different databases. On the other hand, cryptocurrency can be accessed through mobile wallets.


I believe you understand the difference between blockchain and cryptocurrency and how they contribute to the crypto space. You need a blockchain to store and transfer assets, including crypto.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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