Blockchain and cryptocurrency are closely connected because blockchain technology is the foundation for cryptocurrencies. A blockchain is a decentralised digital ledger that records all transactions across a network of computers. Instead of relying on a central authority such as a bank, blockchain allows transactions to be verified and stored securely by participants in the network. Cryptocurrencies use this system to operate safely, transparently, and efficiently.

When a cryptocurrency is created, it is usually built on its own blockchain or on an existing blockchain platform. For example, Bitcoin operates on the Bitcoin blockchain, while many other digital tokens are created on the Ethereum blockchain through smart contracts. Blockchain technology ensures that every transaction is recorded permanently and cannot easily be changed or manipulated. This creates trust among users without needing intermediaries.

Blockchain also controls how new cryptocurrencies are generated. In proof-of-work systems, miners validate transactions and add new blocks to the chain, earning newly created coins as rewards. In proof-of-stake systems, validators confirm transactions and help maintain the network while receiving rewards.

Another important relationship is security. Blockchain uses cryptographic methods to protect transactions and prevent double-spending. Without blockchain, cryptocurrencies would struggle to maintain transparency, decentralisation, and security. As blockchain technology continues to evolve, it is expected to support even more innovative cryptocurrencies and digital financial systems in the future.