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Blockchain vs. Cryptocurrency

By @soscrypted | TheCryptoStew | 23 Jul 2021


Blockchain vs Cryptocurrency

Sorry, but cryptocurrency is boring ;(

Bored Rhino

Sometimes the words blockchain and cryptocurrency are used interchangeably. There are crucial differences.

  1. Blockchain is a way to organize data and affect the governance of behavior within the network.

  2. Cryptocurrencies are digital asset or currency units; fixed or inflationary.


Blockchain

Blockchain is used to create a digital ledger. It is used to execute smart contracts or create programmable moneyprogrammable escrow, and even more groundbreaking methods to declare and track ownership of digital and intellectual property.

The emphasis on smart contracts and code execution are the hallmarks of other blockchain projects like Ethereum.

How a network’s resources are allocated for a blockchain depends on the protocols in use by the network.

Smart Contracts

Many developer teams like Polkadot, Cardano, and Ethereum will continue to develop interesting solutions for use-cases as the ecosystems and their economies evolve. There are many more such projects, and these are mentioned in no particular order.

Digital Rights NFT

More recently, digital rights management via non-fungible tokens or NFT is a sector quietly building potential to disrupt licensing and digital rights management. Platforms like OpenSea (pictured below) Rarible, and others are brimming with artists and items, and do not intend to take prisoners with their widely available marketplaces which focus on recovering ownership rights, and proving ownership.

Opensea Dashboard

The need for ownership verification of digital goods for non-currency items like artwork and music will change the landscape of several industries relying on outdated practices. This characteristic of “provable scarcity”, something Bitcoin shares with many other blockchain networks, is the breakthrough for the licensing of intellectual property.

Gaming NFT

Gaming as an industry, with the addition of NFT's, is crucial to understand. Hours and days spent toiling for The Sword of Truth, or some amount of gold are no longer wasted. Traditionally you must remain invested in a world to unlock the value of your time-spent in game earning various items.

If you lose interest for a specific game, your in-game items stay with it. A few popular projects include Enjin's Minecraft plugin, Axie Infinite, Chain Games, as well as worlds that are openly being developed like Decentraland with minigames, and ownable properties on which you can build a dapp of your own! 

Enjincraft - Minecraft Plugin for Enjin

We now innovate within one of the biggest coming industries of all time. Professional gamers pay attention, problems like Diablo 3's janky marketplace, duplication problems, and in-game gold farming and its economic and legal barriers are easily solved with NFT, alongside creating entirely new opportunities to unlock gaming.  

Defi

Decentralized Finance or Defi Apps have continue to build out these blockchains, and are pushing the boundaries of how money and assets can be utilized. While Defi is a gigantic improvement over centralized finance, and the legacy financial system, in order to appreciate its majestic and liberating qualities, you have to use it. 

Economies like Terra (LUNA), Cosmos (ATOM), the many Layer-2 solutions built on Ethereum and more are carving a path towards removing middlemen, and instead placing auditable smart contracts at the core of how finance and economic ownership operates. 


Cryptocurrency

While the topic of cryptocurrency should be given quite a substantial rest, the question of currency or asset is a necessary discernment. A good cryptoasset like Bitcoin, and soon Ethereum with its deflationary burn mechanism, will always hold value due to scarcity and the immutable ledger provided by their network.

How cryptocurrencies differ from one another is for a different article, an article which will likely not see the light of day, as there are already a variety of resources for such topics.


Conclusion

Each of the above subheadings could be expanded into an article of its own. The innovation is continuing at such a rate that there is not enough throughput of talent to appropriately describe and teach about the earthshattering developments, much less code, develop and deploy these projects.

Our team looks forward to continuing to write, teach, and work with blockchain and dapp projects on their content, and documentation, if only to increase the bandwidth of the industry and help to unlock the talent necessary for its continued development. 

Vote for our new articles with a like or a comment for your most exciting domain within the blockchain space. Is it still cryptocurrency?  

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@soscrypted
@soscrypted

The Crypto Stew is a community giving blockchain-centered market updates for newcomers, and nuanced personal development philosophy for the experienced.


TheCryptoStew
TheCryptoStew

The Crypto Stew is a community giving blockchain-centered market updates for newcomers, and nuanced personal development philosophy for the experienced.

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