11 myths about the blockchain and crypto-currencies, which you should not believe in

In January, Square announced that bitcoin trading is now available to almost all users in its Square Cash payment p2p application. This is a turning point in the crypto currency market, as well-known financial companies are now beginning to compete with large crypto-exchange exchanges.

Despite the volatility of bitcoin, crazy hobby for crypto-currencies is not going to slow down, as well as the technology of blocking - distributed registries, on which crypto-currencies are based. Bitcoin and blockchain surround many myths, and if you are going to enter this market, it is important to learn to distinguish truth from fiction. Forbes Technology Council of 11 participants discussed some of the most common misconceptions about these technologies and prepared a list of refutations. All of them are given with the explanation of the author of the explanation.

1. Blockchain and bitcoin are one and the same
   Bitcoin is more popular than its basic blockchain technology, and people often confuse them. Blockchain is what allows you to write p2p transactions in a distributed registry across the network. Bitcoin is a crypto currency that can be transferred directly between two people without the participation of a third party, such as a bank. - Jeremy Williams, Vyudu

2. The only sphere of application of the blockchain is the crypto-currencies
   The blockchain and the crypto currency are good together, like peanut butter and jam. They are a great pair, but they can work perfectly on their own. There are a lot of ways to apply for blockchain: the basic technology of distributed registries can be used in any business and in any industry. - Tammy Cohen, InfoMart

3. Information about the work of the blockchain is not publicly available
   This is one of the most common misconceptions about blockchain technology. Contrary to this opinion, activity in the majority of detainees is perfectly monitored. In the work of the detachment there are no secrets, and it is not necessarily connected with criminal activity! - Maria Clemens, Management and Network Services

4. Crypto-currency transactions are anonymous
   Many people mistakenly believe that all crypto-currency transactions, including bitcoin transactions, are anonymous. Bitcoin is a public registry that tracks how much money was sent from one address to another. Many government organizations have established contacts with the largest exchanges to enable them to identify address owners. - Thomas Griffin, OptinMonster

5. Blockchain will change everything related to business transactions
   Blockchain is often positioned as a technology that will dramatically change the way a business records and manages transactions. In fact, the block-system is more difficult to scale, it requires more resources and time to confirm the transactions compared to how everything works now. Blockchain is really relevant where there is a need for secure verification of transactions and the invariability of records about them. So the scope of its application is limited. - Rajat Mohanty, Paladion Networks

6. Crypto-currencies are volatile, and it is unlikely that the blockchain should be considered reliable
   This error is popular among those who connect the volatility of the crypto currency with confidence in the technology of blockchain. However, the blockbuster has many spheres of application besides crypto-currencies, and, most likely, it will become a factor of cardinal changes. With new technologies, it often happens that the original uses, interfaces and content are overrated, and the technologies themselves are underestimated. - Wade Burgess, Shiftgig

7. Crypto currency is most suitable for criminal activity
   It is true that decentralization and anonymity are attractive to criminals, but at the same time, crypto-currencies offer excellent opportunities for law-abiding citizens in an economically or politically unstable environment. If you can not entrust your money to local banks because of corruption or see that the situation in your country may worsen, then crypto-currencies are probably the best way to store your money. - David Murray, Doctor.com

8. Blockchain is just a storage engine
   Many people mistakenly think that the blockchain is the storage mechanism. However, the advantages of a blockchain are disclosed only when it is used for an exchange involving at least two sides, one of which takes, and the other - gives. - Stefan Pettsov, Swisscom

9. Crypto currency and blockchain account - only for people from the sphere of technology and finance
   Now well-known companies such as Square are actively implementing these technologies, which can inspire ordinary consumers to use crypto-currencies in spite of fear of the unknown. Typically, such users do not understand what constitutes blockchain and even crypto-currencies, and prefer to stay away from them. However, people trust Square, and the general public will begin to trust these technologies. - Megan Chilcott, OrderInsite

10. Tokens and coins are one and the same
    The tokens and the initial offers of coins (ICO) are linked with the blockchain. Coins have only one practical value - to work as a means of saving. With tokens, things are more complicated: they can have added value, expressed, for example, in ownership, practical utility, profitability and interchangeability. Property rights can be associated with real estate or intellectual assets. Tokens can be changed for certain products, services or loyalty points. - Jeff Bell, LegalShield

11. Crypto-currencies are fundamentally different from other currencies
    There was too much hype about the blockchain and "crypto-compound" crypto-currency. It is worth asking yourself: what is currency? This is a unit of measurement, a method of communication and transfer of value. What assets form the basis of value for the new crypto currency? Are smart contracts written so as to adequately reflect the future perception of an asset? - Vinny Cheng, Io-Tahoe