Although the price of bitcoin is very variable, its popularity is not decreasing. The same can be said for blockchain technology, which is the foundation of the cryptovalut. Bitcoin and blockchain have lived through many myths, so it is worth learning the principles on which they are based. Here are the most common inaccuracies concerning both technologies.
Blockchain and bitcoin are no different
Bitcoin is closely related to blockaine technology, which is why many people associate these concepts. In short, blockchain saves data from P2P transactions, and bitcoin is a cryptic one that can be sent between two people.
Blockchain is only used to handle cryptovalut
The two technologies work together, but separately they can also perform certain functions. For example, blockchain can be used in companies and industrial plants.
Blockchain data are not public
Contrary to popular belief, information on the operation of the blockchain is publicly available and the technology does not hide any secrets.
Transactions using cryptovalut are anonymous
So many people think so, but bitcoin is based on a public dispersed database, whose task is to track the transfer from one address to another. Many government organisations already work with stock exchanges, which means that they can easily reach the owner of a given address.
Blockchain is a revolution in business transactions
Comparing blockchain to the currently used methods, it is more labour-intensive and, moreover, it takes a lot of time to confirm the transaction. Blockchain technology is suitable when safe verification and stability of recorded data is a priority.
Blockchain technology is hard to trust
Blockchain is used in many situations, not only in the case of cryptovalut, which may mean that it will become more useful over time. This is a relatively new solution, so the technology is underestimated for the time being.
Cryptovalutes are perfect for criminals
It is true that anonymity and dispersal of information is a convenience for such people. At the same time, it should be noted that this method is also beneficial for the righteous, e.g. at a time when the homeland is in an unstable situation and they do not trust banks.
Blockchain is just a data storage mechanism
Thinking that blockchain is only used for data storage is wrong, because its main advantages appear when it is used as an exchange mechanism to serve at least two people.
Cryptovalutes and blockchain are for people in the technological and financial circles
After the appearance of bitcoin in the offer of companies like Square, more people will start using cryptovalut. Until now, an ordinary user, not knowing about cryptovalut and blockchain, has avoided using these technologies.
Tokens and ICO are one and the same
Blockchain technology uses tokens and ICO. ICO's task is only to raise capital through startups, while tokens have many more uses - e.g. they can be used in services to facilitate product distribution or as loyalty points.