Imagine a blockchain as a huge notebook that is stored not in one place, but for everyone at once. It records every cryptocurrency transaction that has ever occurred.
Entries in this book cannot be changed or deleted. Anyone can view these entries, but no one can falsify them. New entries are added only after verification by all network participants.
Why is this cool?
Security: Your cryptocurrencies are protected from hacking and fraud. Transparency: All transactions are open and auditable. Decentralization: No bank or government controls the cryptocurrency.
Blockchain is the basis of all cryptocurrencies.
Understanding how it works is the key to successfully investing in the world of cryptocurrencies.
But how is the blockchain different from the coin itself?
Imagine that the blockchain is like fertile soil on which you will grow your cryptocurrencies (virtual cucumbers, tomatoes, etc.).
Blockchain is a technology, a system, an infrastructure. It provides security, transparency and decentralization of your cryptocurrencies.
The coin is the virtual fruit itself that you grow on this soil.
A coin is a unit of measurement for cryptocurrency. Each coin has its own value, which can change over time.
Simply put:
The blockchain is a house, and the coin is the person living in it. The house (blockchain) cannot be eaten, but it provides security and comfort for those living in it (coins). Residents (coins) can be different (Bitcoin, Ethereum, etc. .) and have different values.
Important!
Blockchain and coin should not be confused. Blockchain is a technology, and a coin is an asset.
I hope this analogy has helped you understand the difference better!
