CRYPTO: debunking common myths
Blockchain and cryptocurrency’s rise to popularity sparked conversation in mainstream news media and online forums everywhere. But what’s the real deal?
For newcomers in the world of blockchain technology and cryptocurrency, there’s a chance that it may come of as perplexing and intimidating. The technologies on their own are confusing enough for the unfamiliar, and it doesn’t help that there is a lot of false information that surrounds it. In this article we aim to dispel the most persistent myths about them.
Blockchain = Bitcoin
This myth is born because the two terminologies are used together so often, resulting in people getting the impression that Blockchain and Bitcoin are the same. The two are related but they are not interchangeable.
Blockchain is a decentralized and digitized ledger that allows transactions to be recorded. This incorruptible and transparent platform is one of the many underlying technologies that make cryptocurrencies like Bitcoin possible.
Bitcoin is a cryptocurrency stored in a virtual wallet that can be exchanged without having to go through any third party arbitrators.
Blockchain can only be used for Bitcoin
Contrary to popular belief, Blockchain is capable of doing so much more than being a currency. Several industries have already started exploring the potentials of Blockchain technology and the benefits it can contribute to society. They were able to utilize the technology in digital voting, education, and logistics, among others. It really illustrates how wide and encompassing Blockchain technology’s power is.
Cryptocurrency emphasizes user anonymity
The blockchain is often perceived as an ‘anonymous’ environment and this may produce fear and skepticism among those who are looking into crypto trading.
However, many believe that pseudonymous is the better fitting word to describe how identities come into play in Bitcoin and other cryptocurrencies. Traders operate with a pseudonym to hide their true identity and it also serves as the address where all their cryptos go. Aside from that, all the transactions made are recorded on a secured and transparent public ledger that can be traced anytime if desired.
Cryptocurrencies are best for criminals
Because it is decentralized, and the level of anonymity in its nature, many believe that cryptocurrency appeal the most to cybercriminals. They may use it as a tool to carry out their illegal and under the table transactions. But on the contrary, they actually are less likely to use cryptocurrency in their crimes.
The mentioned features are actually significant efforts to safeguard law-abiding citizens from any form of attacks by shady lurkers online. As mentioned earlier, there is an existing public ledger that tracks all of the transactions being made and it is practically impenetrable. The average criminal would make sure to steer clear of that.
Volatility in cryptocurrency = unreliable blockchain
The value of cryptocurrencies have the tendency to change rapidly and quite unpredictably. As a result, many people give blockchain the unfair judgment of being unreliable. While the two may be directly connected, they should be viewed separately and not considered as a single entity.
Cryptocurrency is just one of the many applications that utilize Blockchain in its underlying technology. Hence, the volatility in the crypto market has little or nothing to do with the technology that it uses.
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Blockchain activity isn’t publicly accessible
This claim is false since majority of the activity in a public blockchain is traceable and accessible to anyone who is interested. Its data structure enables people to openly trace a train of transactions back to its origin. Hence, everything is available for everyone to see.
In conclusion
Due to the influx in the volume of activity relating to Blockchain and Cryptocurrency, it is inevitable that some people will to try to put it in a bad light and scare others that might be interested. These myths are results of confusion, miscommunication and lack of research regarding the technologies involved.
Keep in mind that not everything that you see online is true. It really pays to verify the information being perpetuated by the online community to make sure that no harm will come your way. Make sure to only participate in reputable blockchain projects, and to apply the technology to legal use-cases only.
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