Cryptocurrencies and the blockchain are complex concepts to understand. Despite the incredible surge in people investing in cryptocurrencies, many of those same investors admit that they know nothing or very little about how crypto markets work.
While the blockchain was created alongside the first cryptocurrency, known as bitcoin, they are not synonymous with each other. A fitting analogy that people use to describe the relationship between the blockchain and bitcoin is that the blockchain is the worldwide web and bitcoin is an email. The blockchain is substantially bigger than a particular cryptocurrency, with the potential to change healthcare and voting with unalterable, verified and quickly transferred data.
As PWC notes, from a business perspective, it is beneficial to consider blockchain technology as a kind of next-generation business process improvement software. Such advancements in collaborative technologies like blockchain improve business relationships between companies and have the potential to increase revenue.
Cryptocurrencies are now being widely discussed from a surge of interest, including from more traditional financial institutions. At its core, a cryptocurrency is a mode of exchange, similar to the Canadian or U.S. dollar, but exists in digital form and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
Why not be one of the people in the world who understands the blockchain, cryptocurrencies and the potential they have to the world?
Here are some excellent resources for people to grasp the intricacies of cryptocurrencies: