The Difference Between Blockchain Technology & Cryptocurrency

It seems like everywhere you look these days, someone is talking about blockchain technology and cryptocurrency. But what do they actually mean? And are they the same thing?

This blog post will break down the differences between blockchain technology and cryptocurrency and explain why businesses should be paying attention to both. We’ll also give some examples of how businesses use both technologies to power their operations. So read on to learn more.

What is blockchain technology?

Blockchain technology is a distributed ledger technology (DLT) that records transactions in a digital public or private database in chronological order. “Blocks” of verified transaction data are added to the chain, creating an immutable record of all activity on the blockchain.

Blockchain technology can create both public and private blockchain networks. A public blockchain network is one where anyone can join and view the transaction history, while a private blockchain network is “permissioned,” meaning only authorized users can access it.

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Blockchain is distributed across a network of computers, with each computer or “node” having a copy of the entire database. This makes it incredibly difficult for someone to hack or tamper with the data, as they would need to update the copy on every node in the network simultaneously. In addition, blockchain technology enables users to anonymously record and verify transactions without a third-party intermediary. This not only makes transactions more secure but also reduces transaction fees.

Blockchain technology came to the surface with Satoshi Nakamoto’s white paper in 2008. It has vast applications, including in cryptocurrencies supply chain management and voting.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. Most cryptocurrencies are decentralized and not subject to control by the government or financial institutions. They’re often traded on decentralized exchanges and can be used to purchase goods and services. Some popular cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

The organic nature of cryptocurrency is its most defining feature. It is not issued by any central authority and is therefore immune to government manipulation or interference. Cryptocurrency is based on blockchain technology.

Blockchain constantly grows as “completed” blocks are added with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Cryptocurrency nodes use the blockchain to differentiate legitimate crypto transactions from attempts to re-spend coins that have already been spent elsewhere. This can’t be possible with a credit card.

Essentially, blockchain provides the backbone for cryptocurrency transactions by allowing for a decentralized ledger of all crypto exchanges. Cryptocurrency is built on blockchain and allows for digital currency transactions without a third-party intermediary.

What Are The Key Differences Between Blockchain Technology And Cryptocurrency?

There are a few key differences between blockchain technology and cryptocurrency.

Nature of blockchain vs. cryptocurrency

Blockchain is a decentralized technology with no central authority that controls it. On the other hand, Cryptocurrency can be decentralized or centralized, depending on the currency. Bitcoin, for example, is a decentralized cryptocurrency, while Ripple is a centralized cryptocurrency.

Use

Blockchain is the underlying technology that powers cryptocurrency. It is a digital ledger of cryptocurrency transactions. Cryptocurrency is built on blockchain and is primarily used for digital financial transactions (storing wealth, making payments, or investments).

Blockchain has a wide range of other potential applications beyond powering cryptocurrency. It could be used to create a decentralized database of medical records or track the movement of goods through a supply chain.

Value

Blockchain doesn’t have monetary value and, therefore, cannot be used to measure wealth. On the other hand, cryptocurrency has monetary value and can be used to measure wealth.

 

Potential Security Risks Associated With Blockchain Technology Or Cryptocurrency

As with any new technology, there are always potential risks associated with implementing blockchain or cryptocurrency into business operations.

a.    One of the biggest concerns of security in cryptocurrency or blockchain is the possibility of hacking. Because blockchain is a decentralized system, it is less vulnerable to hacking than traditional systems. However, there have been cases where hackers have been able to access wallets and steal funds.

b.    Another risk to consider is the volatility of cryptocurrencies. The prices of Bitcoin and other cryptocurrencies can fluctuate wildly, making them a risky investment for businesses.

c.    Finally, businesses should be aware of blockchain and cryptocurrency's regulatory environment. In some countries, such as China, ICOs are banned outright. In others, such as the United States, regulations are still being developed.

 

How Businesses Are Already Using Blockchain Technology Or Cryptocurrency To Power Their Operations  

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While still in its early stages, blockchain technology is beginning to be adopted by businesses across various industries. Here are a few examples of how businesses are using blockchain to power their operations:

Get Blockchain Technology for Healthcare

Blockchain technology is something that is often misunderstood. However, it has the potential to revolutionize how data is shared in a secure way between different parties. If you are looking for a way to use blockchain technology in your business or industry, please contact us. We have experience implementing this cutting-edge technology and can help you get started on using it in your organization.

Can Blockchain Technology Be Used For Things Other Than Cryptocurrency?

Cryptocurrency is perhaps the most publicized use for blockchain technology. Perhaps this is why most people assume that cryptocurrency and blockchain are the same. In this article, we will show you that blockchain can be used for more than just finance and banking. This exciting, new technology has a wide array of applications that extend far beyond the implementation of digital currencies.

 

Cryptocurrencies, like Bitcoin and others, merely use the blocks on the blockchain as a means to transparently and securely record a ledger of payments. Blockchain can also be used as a secure way of keeping data about other types of transactions.

 

In theory, people across various industries can use blockchain to store different data points immutably. This could be in the form of votes in an election, financial transactions, titles to properties, product inventories, and much more.

 

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Blockchain can be useful in any application where data security is paramount.

This explains blockchain’s wide adoption in vast industries like healthcare, supply chain, cloud storage and so on. We'll expound on these and other applications of blockchain in this article. But first, let's look at the technology, as it relates to cryptocurrency.

 

Cryptocurrencies and Blockchain

While people use cryptocurrency and blockchain interchangeably, these two aren't the same thing. Bitcoin was the first example of blockchain in action when it was introduced as an open-source code.  

 

Cryptocurrencies serve as an exchange medium. They are a disruptive fintech designed to make international transactions secure, faster, and easier, by putting control straight into the concerned parties' hands. These digital assets use cryptography and proof-of-work to create global currencies, secure transactions, control rate issues, all while removing aspects of government control.

 

The immutable, decentralized feature has fueled blockchain's adoption beyond its original use of supporting Bitcoin transactions. Here's how blockchain technology can be used for things other than cryptocurrency.

 

Blockchain Uses in Monitoring Supply Chain Data

 

The supply chain industry is challenged with enormous complexity, utilizing vast amounts of data. Information is often fragmented, inconsistently formatted, making it difficult to access or analyze. Blockchain technology seeks to address these and many other challenges.

 

Blockchain integration in the supply chain allows businesses to record a wide range of information effectively from date, price, location, certification, quality and other forms of critical data. This enables a more accurate and transparent end-to-end monitoring. It can also reduce disputes, as well as blockages of assets throughout the entire supply chain. By eliminating paper-based trails, companies can quickly identify inefficiencies and locate the assets in real-time.

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Blockchain integration in supply chain management will help save time and money.

 

Most companies agree that one of the biggest benefits of using blockchain technology for supply chain management is cost reduction. The ability to use real-time tracking in supply chain management proves to be one of the largest sources of cost-reduction.

 

Plus, there are other incredible benefits such as increasing automation through smart contracts, the provenance of tracking, scalability, and security.

 

Blockchain Uses In the Internet of Things (IoT) Systems

IoT is changing the way businesses run through the use of sensors and other edge infrastructure and devices. While a great thing, this poses a unique challenge for companies that have to protect data at all levels of the IoT environment. And with the ever-growing number of connected IoT devices, the need for data security has never been this complex. Blockchain technology is helping businesses resolve the security challenges in their IoT systems.

 

Blockchain combines with IoT to facilitate the machine-to-machine transaction. This blend also provides a range of potential benefits, like allowing smart devices to run autonomously without a centralized authority. It can also monitor how IoT devices send and receive information. The distributed ledger technology with IoT applies in automotive, agriculture, and banking sectors while, also, extending to smart homes, logistics and smart contracts. Blockchain application allows businesses to manage information on smart devices in an IoT system. This lowers costs linked to data transfer and IoT device maintenance.

 

 

Blockchain Uses in Smart Contracts

 

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Smart contracts are transactions that are secured by a distributed blockchain network.

A smart contract is a transaction protocol or computer program meant to automatically execute, document, or control legally relevant actions and events, as per the terms of an agreement or contract. It aims at reducing the need for external enforcement or a central entity as well as fraud losses.

 

Smart contracts use blockchain to capture, verify, approve and enforce agreements between parties. Blockchain-based smart contracts are irreversible, traceable, and transparent transactions. They are immutable, secure, and exist across a distributed blockchain network. Once recorded, it becomes impossible to change, delete or lose an agreement. The uses of smart contracts are vast, but they are common in property ownership and cross-border financial transactions. Other uses include: monitoring origin and the path of goods, banking and credit card services, among others.

 

Blockchain Uses in Cloud Storage

 

Dropbox, Google Drive, Gmail are great examples of cloud storage. Many companies are using these and other premium cloud storage services to streamline their operations. Data in the cloud is easy to access, edit and share. It also cuts out the need for physical storage and security. 

 

Blockchain applied to cloud storage breaks down user data into small chunks and adds an extra layer of security before distributing it across the network. This is thanks to its features like transaction ledgers, private/public key encryption, and hashing function. Blockchain stores these chunks of data in a decentralized location. So, when hackers try to access the data, they’ll find encrypted data that’s only in parts. They will never be able to access the entire file.

 

Blockchain Technology in Healthcare

 

There are vast applications of blockchain in healthcare. Uses include protecting healthcare data, point-of-care genomics management, managing electronic medical record data, electronics, and personal health record data management.

 

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Protecting personal health information is one of the main ways blockchain tech can be used in the healthcare industry. It can also be used to track disease outbreaks and enable doctors to monitor patients, remotely.

Specific applications of blockchain in healthcare include:

· Research

 

· Collecting data

 

· Interoperable electronic health records

 

· Mobile health apps and remote monitoring

 

· Tracking outbreaks and diseases

 

· Safeguarding genomics

 

· Health insurance claims

 

· Tracing and securing medical supplies

 

· Data security

 

Blockchain Uses in Privacy and Security of Chats and Media

Media companies are now adopting blockchain to secure intellectual property rights of content, minimize costs and eliminate fraud. Blockchain in Media and Entertainment Market report 2021 by MarketWatch reveals that the sector will reach USD 1.54 billion by 2024. Messenger services are also not left behind. With billions of devices and users, there's an inherent danger of hacks, social engineering, and so on. Blockchain technology prevents identity theft, fraud, and data tampering while also protecting critical infrastructure.

 

The Future of Healthcare on the Blockchain

Blockchain technology has many applications in healthcare. It can improve monitoring devices, mobile health applications, and clinical trial data. It can also offer a new model for health information exchanges by making electronic medical records more secure, efficient, and decentralized. While not a magic bullet, blockchain technology offers a platform for investment, experimentation, and proof-of-concept testing.

There's so much hype around blockchain. You'd think it is the cure-all technology or one that will solve the chronic data security and interoperability issues that cripple health data sharing. Blockchain will be used to share health information securely and to approve and monitor health data usage. However, the technology alone won't make health data interoperable or ensure data is shared. A lot has to go into standardizing health data formats and coding and controlling data sharing for research and system-wide improvement.

The first blockchain applications will likely handle the secure exchange of well-defined healthcare transactions like tracking the drug supply chain to prevent counterfeiting or settling insurance claims, and so on. But it will take a while to address challenges like interoperability, sharing, and access.

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What is blockchain technology?

Blockchain is a distributed ledger technology (DLT) used to securely record transactions across many computers in a peer-to-peer network without the need of a third party. In the blockchain, every block of data (block) is secured and linked to the next one using cryptographic principles (chain). It's emerging as one of the most promising technologies of the 21st century and is widely applied in healthcare for these reasons:

But despite its potential in healthcare, blockchain remains immature. Gartner's research describes it as a technology in a "hype cycle,” meaning one that's marked with stages of innovation triggers, enlightenment, disillusionment, inflated expectation but ending in a "plateau of productivity." Health blockchain is still in its early days. It cannot be compared to sectors like supply chain, logistics, and financial services that have seen a much faster adoption rate.

Future of healthcare on the blockchain

From biomedical research, to insurance payments and everything in between, blockchain applications will impact almost all healthcare system aspects. This is because the healthcare sector thrives on data generation and sharing. Here is what the health blockchain may look like soon.

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Solution for the Drug Supply Chain Security Act (DSCSA)

Blockchain's ability to trace and store time-stamped data across a P2P network makes it perfect in solving DSCSA's traceability requirements. DSCSA upholds drug security standards by ensuring that all drugs are traceable from when they leave the manufacturer to the time they reach the dispenser. This is in a bid to boost tracking, detection, and removal of misbranded, counterfeit, or potentially dangerous drugs from the supply chain. A network using blockchain is uniquely secured and could be effective in drug fraud prevention. Today, various trials are underway as different vendors try to craft solutions that meet DSCSA's requirements.

A possible solution for EHRs

Electronic health record management is an important application area for blockchain technology. It deals with data exchanges across various health sectors and ensures to protect the data's source, integrity, and privacy for accurate analysis and insights. EHR is an excellent example of the blockchain-based privacy-preserving prediction model. Facilities are now applying machine learning to study data in their EHRs and using the learned model to predict patient outcome. But since no facility has enough patient records, there's the need to share various data across organizations. However, they have to apply privacy-preserving prediction modeling methods – like blockchain to avoid re-identification and data breach risks. Blockchain stores medical records securely and allows real-time updates. It can also allow secure access for all permissible users.

Solution for medical staff credentialing

Credentialing can be time-consuming and expensive when done through snail mail, faxes, and phone calls. Since blockchain can be approved and updated in stages, it may be a perfect solution in the credentialing process. Credentialing smart contract is an excellent example of a possible blockchain application. A smart contract is a self-executing contract with terms of the agreement between parties written into code lines. It facilitates trusted agreements and transactions to be carried out among disparate, anonymous parties without the need for a legal system, central authority, or external enforcement mechanism. Smart contracts can be used:

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Solution to the need for sharing and privacy

Many blockchain-based features can help facilities strike a balance between privacy and sharing. For years, healthcare organizations have depended on policy to maintain patient data and siloed. But without technologies to resolve the sharing and privacy issues, these organizations risk compromising data. In the coming years, blockchain will take care of such issues, allowing facilities to share critical data without the fear of breach and arising suits. This is thanks to its ability to audit who, when, and where the data is used.

On top of that, the disruptive technology will enable open health data exchange markets run by patients. These markets will only have valuable, verified, and validated data from treatment outcomes, verified diagnostics, genetics, real-world evidence, etc. Permissioned blockchains will allow patients to decide how they want to use their data in exchange for health solutions and compensation.

Adoption of blockchain in healthcare

The perception that blockchain is fairy a new technology and closely linked to the Bitcoin cryptocurrency, hinders its adoption within the healthcare community. Besides, the technology cost can be high. The proof of work, for instance, consumes a large amount of computational power. Again, blockchain doesn't remove or replace modified records but adds blocks to the chain to represent modifications and deletions, which adds to the storage problem.

With that said, blockchain absolutely is a viable technology. And while it could take years for its practical application across the industry, blockchain adoption has already taken off with financial institutions and in dozens of companies. For instance, IBM is using AI to detect patterns with Block Chains to help find treatments or remedies for specific diseases. Mount Sinai also uses blockchain in AI to rapidly read chest CAT Scans of potential COVID-19 patients. There is no telling what the future holds, but we know that blockchain will immensely disrupt the healthcare sector, perhaps for the better.

 

What is the Future of IoT Supply Chains?

A lot has been written about the Internet of Things (IoT) and its impacts on almost all major industries, including transportation, retail, healthcare, finance, and accounting. But one of the most exciting areas of influence is the global supply chain. The Internet of Things shows its fullest potential in processes like supply chains.

Supply chain analysis requires an understanding that the production of any product is inherently dependent on a series of connections and links. When one, or more of the links are weak – whether due to outdated machinery, transport delays, or human errors – businesses end up with poorly functioning supply chains that are costly, with little returns.

The Internet of Things, through its network sensors, offers the much-needed connection in the supply chain – the link between the physical world and that of data. IoT allows companies to transmit critical data across different channels and break them down using powerful analytics engines to optimize any given supply chain component, that helps drive better decisions.

IoT Solutions in Supply Chain Management

Organization and efficiency are two main factors that tend to determine failure or success. If an enterprise can’t locate goods within its system quickly, create delivery schedules efficiently, monitor inventory effectively, or maintain equipment properly, it’s likely to suffer. But the good thing is that organization and efficiency are two areas where IoT excels.

IoT is a collection of interconnected devices that can track, report on, send, and exchange data. These devices (smart devices, chips, mobile sensors, and RFIDs) are linked to computer systems through Wi-Fi or data networks and use sensors to measure different environmental factors, including temperature, location, light levels, handling, movement, humidity, and speed movement. They also automate processes, minimizing human errors.

IoT systems allow businesses to:

IoT-enabled devices are increasingly being implemented to improve the visibility of logistic operations. For example, sensors can be installed in fleets for to offer real-time monitoring updates of transportation and delivery. They also are ideal for asset tracking and fleet management. With this technology in retail outlets and warehouses, there will be more visibility in production, inventory management, and predictive maintenance.

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When connected to the global supply chain, IoT technology can help companies to track and monitor systems in real-time, allowing them to identify and solve problems before they escalate. Such real-time data can also be helpful for businesses to proactively service client demands, reduce downtime, and increase the supply chain’s overall efficiency. And thanks to improved efficiency and visibility across the supply chain, IoT technology enables companies to optimize their assets and ROI.

The Future of IoT Supply Chains

The concept of taking all of the “things” worldwide and linking them to the internet and each other (by extension) is a technological field that’s bursting with promise. The dawning of the age of the IoT is already influencing how supply chain management is happening. Things like organization, efficiency, and relevance are enhancing operations and service quality, with almost unlimited future potential. Here’s what’s in the future of IoT supply chains:

More Companies Will Join In

From the look of things, IoT is coming of age. Studies reveal that the number of enterprises using IoT applications rose from 13% to 25% from 2014 to 2019. The IDC predicts 13.6% yearly growth through 2022. In another survey, 75% of large manufacturers wanted to update their operations using IoT and analytics-based situational awareness by the end of 2019.

There Will Be More IoT Devices

Gartner predicted that there would be a 30-fold increase in internet-connected physical devices by the end of 2020. The same report indicated that IoT would reach 26 billion installed units by the same year and influence the data available to supply chain leaders and how the supply chain works, based on the industry.   

Artificial Intelligence (AI) Will Continue to Grow

AI promises a smart new world of computers that can strategize, plan, calculate probabilities, evaluate options, and make the best decisions. Of course, IoT is the body that gives Artificial intelligence’s brain the ability to act. It also offers the information that AI requires to make smart choices. AI will serve a critical role in monitoring, analyzing IoT data, and sieving it into actionable themes. Machine learning, a type of AI that helps IoT devices to learn without someone having to program them, will then allow systems to adjust according to the company’s preferences.

IoT Will Address Vast Concerns

From what we see today, there are numerous reasons why more and more businesses are incorporating IoT into their operations. From the COVID-19 pandemic and political unrest to environmental concerns like weather conditions, fuel costs, etc. All these affect the way the shipping of goods is done globally. Not to mention today’s consumer, who is very specific about how, where, and when they get products. From consumer electronics, to their healthcare, people will turn to IoT and other technologies to navigate different situations.

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IoT supply chain management will completely revolutionize the way industries get their products and services into the marketplace.

5G Networks Will Continue to Drive IoT Growth

5G network was rolled out in 2019, but the coming years will see many companies switch to this incredibly fast network. 5G promises more ability to connect more smart devices at one go. Greater speeds mean the information gathered by the IoT will be analyzed and managed to a higher degree. It will also drive innovation in companies that create IoT devices (like sensors, identity chips, and computing devices) and boost efficiency and organization. Thanks to 5G, billions more IoT devices can be plugged into the global network, according to Ericsson.

There Will be Supply Chain Digitization 

Efforts to connect all systems as well as implement new digital technologies will still be a priority in the future. Digitization in the supply chain creates transparency, eliminates silos, and enhances responsiveness. PwC foresees a digital environment that removes manual processes and offers a single view of the company and all its supply chain operations.

There Will be Plenty of Big Data 

The growth in IoT, along with the digitization of the supply chain, will yield plenty of big data. IoT will prove valuable for supply chain and logistic managers who want to understand consumer behavior and usage patterns, enhance their inventory management and streamline eCommerce.

IoT Will Become Virtually Invisible

IoT solution will become invisible in the future. The real value of IoT lies in the automation and insights that are enabled when one has access to real-time data on all critical aspects of the business. Manual observation will become uncommon because all alerts will be sent to devices. The future of IoT is billions of cheap, small, low-powered devices that offer instant insights into every system, process, and asset that’s critical to supply chain companies. It is ubiquitous, invisible, and primarily driven by notifications.