A study of the correlation between cryptocurrencies, crypto wallets, and blockchain

What is the current scenario of Cryptocurrencies?

When cryptocurrencies were introduced in cyberspace, they were expected to be the game changers in the world of digital and wireless payment systems. With much anticipation and excitement, people were very optimistic about the success of many kinds of cryptocurrencies.

These virtual forms of monetary entities, known as cryptocurrencies, were supposed to be the future of money. Most of the works upon these online forms of currencies began as early as the 1990s, later being merged into the idea of cryptocurrencies.

Moreover, it was initially thought that all of those cryptocurrencies will be directly linked to the usual bank accounts of the people so that the transfer of cryptos can take place easily and smoothly. But, still, this hasn't been adopted in any banking sector till now.

Since the introduction of cryptocurrency, people have been using many terms such as "Bitcoin, Crypto, Token, etc., to identify the cryptocurrencies. And there are many explanations and definitions for different kinds of cryptocurrencies. But, they all share a common similarity, which is they're all digital forms of money or currency.

What is a Crypto wallet?

A crypto wallet is a safe and secure form of a digital wallet, which is intended to store any kind of cryptocurrency. This wallet is usually issued by the parent organization or founder of the respective cryptocurrency. And this wallet can also be used to make transactions between any two parties. Crypto wallets are usually known to be the safehold of all kinds of online tokens.

To be exact, people always misunderstand the term "digital wallet". It familiarly sounds like the regular wallet where we store money and coins. But in reality, this wallet is just an application, which is intended to hold different kinds of cryptocurrencies.

There are also many kinds of platforms, where people and organizations can trade nearly any kind of cryptocurrency with them. These platforms are called exchanges.

Crypto exchanges like Giottus work as the medium to buy and sell all kinds of Cryptocurrencies. They usually transfer various types of cryptos like Bitcoin, Ethereum, Yearn Finance, Bitcoin Cash, Dogecoin, Shiba Inu, etc. You can download the Giottus app from Playstore/Appstore – https://giottus.onelink.me/YWFR/giottusblog

What is a blockchain?

A blockchain is a type of system which is used to record information in such a way that it is very difficult to alter, hack or deceive the pre-existing system.

It is a type of ledger and storage system, where all the details and pieces of information of transaction activities are duplicated and distributed across the whole network of the computer system of the entire process. Blockchain technology is used by many kinds of cryptos, some of the most popular are Bitcoin and Ethereum.

These blocks are like real building blocks. Suppose, if you make a tower of blocks and suddenly pull one of the blocks in the middle part, then the whole tower will be affected or it will fall.

Similarly, Blockchain's security is obtained by this concept. It is impossible to hack or deceive the system because if any of the informational blocks have been tampered with, then it'll not take a single moment to identify the undesirable change.

How are Cryptocurrencies, Crypto wallets, and Blockchain related to each other?

All of the above three terms are related to each other in a very strong connection. None of the terms can be complete and be of use without each other. The whole world of cryptocurrencies relies on blockchain and crypto-wallets. There's not even a single moment where these technologies run without each other.

Cryptocurrencies run on the technology of blockchain, which is a type of storage and security system. All of the possible security aspects of cryptocurrencies are provided by blockchain technology. Without it, there will be very little security and privacy in the cryptocurrency network. As a result, trading will not be possible and conclusively, every crypto transaction will be affected.

To be exact, the whole network of cryptocurrencies is backed by blockchain technology. So, it is not possible to initiate anything without the strong use of blockchain technology.

The relationship between cryptocurrencies and crypto wallets is of much importance. Crypto wallets provide a safe and secure means of storing the different kinds of cryptos without any kind of hindrance to the factor of integrity and security. These wallets are built as applications, which can be installed on different kinds of devices such as smartphones, laptops, computers, etc.

Crypto wallets can also be used sometimes to initiate the transfer matrix, whenever a user wants to utilize a small amount of crypto. This is usually in small-scale transfers, where wallets are used for buying day-to-day supplies.

And moreover, crypto wallets to work on blockchain technology. So, it is visible that all of the three technologies work parallelly with each other to make sure that the world of cryptocurrencies never goes down in any circumstances.