Five Untrustworthy Notions in Blockchains and Cryptocurrencies!

Smash hit as they are, digital currencies bear witness to mixed qualities. As such, when it comes to staying away from frauds, understanding facts and identifying concepts are of paramount importance. Five untrustworthy notions relating to blockchains and cryptocurrencies are introduced herein for your reference.

1. Blockchains are equal to cryptocurrencies.

Blockchains refer to a record-keeping technology storing data in blocks that are then chained together whereas Bitcoin is a kind of cryptocurrency. As a result, blockchains are not equivalent to bitcoins and vice versa.

2. Blockchains are only applied to cryptocurrencies.

Chains and coins are closely associated. However, Bitcoin only constitutes a part of the comprehensive role played by blockchains that includes Ethereum.

3. The public dont have access to the operating information on blockchains.

The record of the majority of activities on blockchains can be found as there is no skeleton in the closet about blockchains.

4. Crypto transactions are anonymous.

Movements of coins can be found in Bitcoin, a public ledger. Some so-called ‘partly anonymous’ digital assets are not anonymous.

5. Tokens and coins are regarded as twins.

The only role played by coins is representing values in blockchains, whereas tokens can involve more sophisticated assets, including property rights and communal facilities. Coins are usually used to reap profits as they are easy to understand and produce.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects to protect you from hidden dangers in the risky industry!