The blockchain or the coin?
There are so many great articles on crypto and blockchain lately that are a great help for both newbies and seasoned investors. But sometimes it can be hard to know exactly what the author is talking about. Sure a person may not have a hard time knowing the difference between Ethereum and ether, but what about between Bitcoin and bitcoin? Are they talking about the blockchain or the coin? Let's figure it out.
Q: There is a difference between them?
A: Yes. The blockchain refers to the software. It is used to record transactions and track the flow of assets between users of that software. The coin is the native asset of that software, of which is traded and tracked. For example, the native asset of the Bitcoin blockchain is bitcoin.
Q: How can I tell the difference?
A: Good question, sometimes both the coin, and the blockchain that they are used on, have the exact same name, like Litecoin and litecoin. In cases like these, the difference is marked by the capitalization of the first letter. So "Litecoin" ( capital L) refers to a blockchain and "litecoin" (lowercase L) refers to a coin. This holds true of all blockchains and coins, such as Ethereum and ether.
Q: what about "the blockchain" and "blockchain technology"?
A: When people talk "the blockchain" they are usually referring to the original blockchain; Bitcoin. "A blockchain" or "blockchain technology" refers to the many other blockchains that are based on the original. On the other hand, "blockchain" is used to talk about the concept instead of any particular coin.
I.E.
- The blockchain proves that a financial system can be decentralized.
- stellar is a blockchain with a much lower transaction fee than Bitcoin.
- Golem blockchain technology provides a decentralized supercomputer for everyone.
- Many institutions are considering using blockchain to power their infrastructure.
I hope that clears up some confusion about the differences between a blockchain and coin. As writers, we want to make sure we make it easy to understand for all so that we can educate people on blockchain and it's many uses. Thanks for reading!
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