No doubt, blockchain technology has been a game-changer as it holds incredible potential to change the future of the economy. Different business sectors ranging from banking to procurement, retail, and healthcare, every possible industry in the vicinity is actively embracing the transformation brought by Blockchain. However, despite the aggressive popularity it has received, there are still some myths, that are reducing the potential advancements this technology can bring to your business.
Therefore, to help you truly explore the possibilities of blockchain, we have brought this post today, so you can get a clear understanding of this technology and bring the reality out of the myth bubble.
Myth # 1
Blockchain is good for shady activities
Most of us consider blockchain a hotbed for the illegal since it is anonymous and online. But we should not forget criminals can use other resources as well to facilitate their crime. Blockchains are designed and developed for legitimate, legal, and necessary tasks, hence it is as secured and legal as any other secured portal. To keep a hold on the legalities, many countries have taken the steps forward to recognize it legally.
Myth # 2
Only bigger enterprises can benefit from it
It is one of the most popular myths; that only bigger businesses with higher yearly turnover can use this technology. Actually, blockchain is for every business size, and sooner due to its open-source environment, Blockchain will change the face of the global economy. And it will be a new normal for every business type and size to utilize this technology to ease down the woes of their money and data sharing.
Myth # 3
Blockchain and bitcoin are the same things
Yeah, we all have heard this myth several times and this is the most popular one of the bunch. Since blockchain first came out in context with the Bitcoin, it is considered to be on a similar platform. But you must know that there are fundamental differences, in both of them. Blockchain is a distributed ledger technology, and it offers a decentralized way to store data and further checks its authenticity through secured mechanisms. On the other hand, Bitcoin is a digital currency, which operates on the blockchain, and allows transaction verification, while using cryptography for security. In other words, Bitcoin and other cryptocurrencies are the use cases of blockchain technology.
Myth # 4
All blockchains are open
No, not all blockchains are open. You should know that some blockchains are private and are based on permission formats. On the other hand, some are public and don’t require any permission to enter.
Myth # 5
Blockchain technology is immutable and unhackable
Well, I must call it one another popular myth, that suggests that Blockchains are unhackable. But not many of us know that this technology is susceptible to colluding attacks. In this way, when one or more party exceeds 51% of mining power can cheat the network. Although there is a challenge, such an attack would need a bigger number of colluding parties, and in the case of Bitcoin, this is next to impossible to achieve.
Myth # 6
Blockchain provides 24/7 transparency
Yes, it is the main attraction of blockchain technology, but this 24/7 transparency factor is not a reality. It isn’t appropriate from the legal and privacy point of view as well, that everyone should be able to see all the data within the blockchain. Hence, to maintain the crucial security concerns, the blockchain can’t offer round the clock transparency.
Myth # 7
It is hard to understand the world of blockchain
We all should know that Blockchain is an emerging technology, which can seem different and complicated to few. But once you start with this technology, it becomes easier to use and understand. It is just based on a concept that is a public digital ledger, which further records all transactions inside a given network. And this is publicly verified and cryptographically secured. Due to its nature of record-keeping system, it becomes easier to record transactions in blocks, which is further maintained by peer-to-peer networks. Also, the blockchain community is ever-growing, giving you sufficient online material and tools to learn more about it.
Myth # 8
Blockchain is not fully decentralized
Once again it is a myth, that needs to be worked upon, and to clear the cloud of doubt, let me tell you that Blockchain is a decentralized technology. And to function, it requires several nodes to participate and validate the block of transactions before adding them further to the chain. Although, there can be a meager possibility for a smaller group to attain full control over the network by investing heavily in computer hardware to validate transaction blocks. But you should not forget, the open-source code architecture of blockchain ensures that every joined member can see this behavior.
Myth # 9
There is only one type of blockchain
We all live with this misconception, that there is the only type of blockchain that exists, but it is nothing but a cold-blooded myth. There are different types of blockchain existing, such as Private, Public, and Hybrid. The very first type is a public blockchain, that holds no limitation for any access, which means anyone can read or write on it, and further audit and review anything. Another, most popular public blockchains are the Bitcoin and Ethereum. On the other hand, the second type is, private blockchain, is permission-based, which means, you cannot join it without an invitation by the network administrators, its popular type is Hyperledger. Further, the final type is a hybrid blockchain, such as Dragonchain. As the name suggests, it has the privacy benefits of a permission blockchain and also has transparency benefits of a public one as well.
Blockchain is still considered to be in the nascent stage, which clearly states that there will be more number of advancements to be made shortly. The hype around it has sprouted the users’ engagement but it has also brought it at the forefront of misconceptions. Hence, it is better to kill the over-hyped buzz of myths around it, so it can be used in its best environment, among all sectors and businesses globally.
Author : Ankit Singh is an ambitious entrepreneur who has set a remarkable difference in the app development turf, with his innovative ideology and creative spark. Apart from having a knack of technical advancements, he also has a taste writing and loves to share technical tips happening in the tech industry.