Scotch is a type of whisky. For whisky to be called scotch, it must be distilled in Scotland. There are two types of whisky (Scotch whisky is always spelled without the 'e') distilled n Scotland: grain and malt. Blended scotch is made from blends of up to 50 different kinds of grain and malt whiskies. 95% of the Scotch exported from Scotland is of the blended variety, but that's not because the rest of the world has poor taste; most of the scotch consumed in Scotland is also blended.
Blended whisky's popularity can probably be explained by two factors: first, it is less strongly flavored and challenging to the palate than single malt whiskies, and second, it is usually less expensive. Blends have much less snob value than single malts, though, and they don't have as much character or flavor. Serious scotch drinkers usually stick to single malts.
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