Many people in the crypto world, most especially the beginners, are often confused between blockchain and cryptocurrencies the same way they are confused between blockchain projects and crypto projects. But first things first. Let’s tackle the truth about how blockchain is different from cryptocurrencies first, as we all need to know it to be able to understand them better.
What is blockchain?
A blockchain is a technology that is a distributed ledger that forms a chain of blocks, hence the name. Each of these blocks in the chain contains information and data that are bundled together and verified in previous blocks. These blocks of transactions are then recorded permanently in the distributed ledger that is the blockchain.
What are cryptocurrencies?
Cryptocurrencies are digital currencies that are formed using cryptography. Cryptography is a method of protecting information and communications by using codes so that only those intended to receive the information can read and process it. Essentially, it’s an art of writing or solving codes. The prefix crypt means vault or hidden, and the suffix graphy means writing. Cryptography allows digital assets to be sent on a peer-to-peer basis without the need for a third-party so, cryptocurrencies are decentralized in nature.
What is the difference between blockchain and cryptocurrencies?
The difference between blockchain and cryptocurrencies is pretty easy to understand. Blockchain is the technology that serves as the distributed ledger that forms the network for transacting and transferring value and information, while cryptocurrencies are the currencies used in these networks for sending and paying values for the transactions.
What is the difference between blockchain projects and cryptocurrency projects?
Since so many ICOs have continuously been coming out, people often think that everything is a crypto project because of the term “Coin” on the Initial Coin Offering (ICO). The truth is, ICO is actually defined as a popular method to raise funds for start-ups that wish to offer a new coin, app, or services that are usually related to blockchain. Having said this, crypto projects are those that offer a new coin only, as simple as that.
A blockchain project, on the other hand, could offer anything, and it’s called a blockchain project because it uses blockchain technology for its platform. A great example of a blockchain project is the Virie Project. It’s a decentralized virtual exchange platform that uses all the components of the blockchain technology for processing safe and secure transactions and payments using Proof of Stake and cryptography. While it has its native coins simply called Virie (VRE), it’s not a crypto project since it offers more than just a new coin. It also offers exchanges of services, goods, and other currencies including fiats.
Many have tried creating a blockchain project, but Virie Market is the first and only blockchain product that has been completed and is now ready to use by anybody anywhere in the world with an internet connection. What’s even more unique about it is that it’s the first time that an ICO and IEO will be done with a finished product. Most of the failed ICOs in the past didn’t have a finished product yet so, the investors’ money went off to the drain soon after the ICO. With the Virie Project, the investors can be assured that it won’t fail. Read its white paper here and download the application here to see for yourself how it works.