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Forbes Technology Council

In January, Square announced that bitcoin trading is now available to nearly all users on its peer-to-peer payment app, Square Cash. This represents a turning point in the cryptocurrency market, as mainstream fintech companies begin to take on the big cryptocurrency exchanges.

Despite bitcoin’s volatility, the crypto-craze shows no signs of slowing down — nor does blockchain, the distributed ledger technology behind cryptocurrency. But there’s also a lot of confusion and myths surrounding bitcoin and blockchain, and if you’re going to jump into the market, it’s important to fully understand what you’re getting into. Eleven members of Forbes Technology Council discussed and debunked some of the most common misconceptions about these technologies.

1. ‘Blockchain Equals Bitcoin’ 

Since Bitcoin is far more popular than its root technology, blockchain, people get mixed up between the two. Blockchain enables peer-to-peer transactions to be recorded on a distributed ledger throughout the network. Bitcoin is a cryptocurrency that can be exchanged directly between two people without passing through a third party like a bank. – Jeremy Williams, Vyudu Inc.

2. ‘Blockchain’s Only Application Is Cryptocurrency’ 

Blockchain and cryptocurrency go together like peanut butter and jelly. They are outstanding together, but they also work brilliantly on their own. There isn’t just one use for blockchain. Every business and industry can use the underlying technology of distributed ledgers. – Tammy Cohen, InfoMart Inc

3. ‘Information On Blockchain Activity Isn’t Publicly Available’ 

One of the common misconceptions in blockchain technology is the fallacy that it is not public. The majority of blockchain activity is rather traceable, contrary to popular belief. Additionally, there are no hidden secrets to blockchain and no dark criminology associated with its activities. – Maria Clemens, Management and Network Services, LLC

4. ‘Crypto Transactions Are Anonymous’ 

Many people are under the false assumption that all Bitcoin and crypto transactions are anonymous. Bitcoin is a public ledger that tracks how much was sent from one address to the next. Many government organizations have established relationships with major exchanges to complete the mapping of the address to the owner. – Thomas Griffin, OptinMonster

5. ‘Blockchain Will Change Everything About Business Transactions’ 

Blockchain often gets positioned as a technology that will change how businesses record and manage transactions. Compared to current methods, it is actually more process intensive, difficult to scale and takes more time to confirm transactions. As for security, it’s mostly useful if there is a need for a secure verification and immutability of transaction records. Otherwise, use cases are limited. – Rajat Mohanty, Paladion Networks