Although the direction of the cryptocurrency market is downwards, Blockchain as a technology is showing no signs of slowing down. The distributed ledger technology offers a unique way of recording transactions on a network in a way that will make it secure and transparent at the same time. People all over the world are talking about the technology and its potential to disrupt the industries.
When a new technology hits the market, misconceptions and fallacies often pop up alongside and blockchain is no exception. The immense popularity has created a lot of confusion about blockchain in the market. As more and more companies are jumping into the market, it’s important for us to avoid all those blockchain myths and understand the basics first.
1. Blockchain is Identical to Bitcoin
Since both the terms are inter-related, people tend to get mixed up between Blockchain and Bitcoin.
Bitcoin is a cryptocurrency based on blockchain technology that is used to exchange value (cryptocurrency) without going through a bank or any third-party institutions.
Blockchain, on the other hand, is a distributed ledger that can store data like financial transactions in the form of blocks. It is the underlying technology of Bitcoin.
2. Blockchain is Nothing More Than Cryptocurrencies
It is yet another blockchain misconception that many of you might have believed. Although Bitcoin was the first implementation of blockchain, the technology can do a lot apart from cryptocurrencies. Blockchain has the potential to bring a revolution in the IT industry by upgrading the traditional concepts. To know more about what blockchain can do, you can read our article –
“Future of Blockchain beyond Cryptocurrencies”
3. Everything is Visible to Everyone
Although this may be true for permissionless blockchains like the Bitcoin and Ethereum blockchains, permissioned blockchains are configurable to only allow predefined data sets to be visible. Everything on a permissioned blockchain is traceable, but the data is accessible only to the nodes who have necessary permissions.
4. Blockchain isn’t Reliable
This blockchain myth seems to come from those who are more associated with Bitcoin and its volatile nature. Blockchain makes the data immutable thus making it reliable to store information or make transactions. Moreover, every transaction made on blockchain is encrypted with public and private keys making it a secure platform for buyers and sellers.
5. Blockchain is for Finance People Only
One of the most common blockchain myth is that the blockchain is feasible for only the people in technology and finance. Blockchain is a promising technology that has the potential to transform several industries including real estate, pharmaceuticals, and retail apart from banking and finance. To know more, you can read our extensive research on blockchain and its potential to disrupt various industries.
5 Industries Blockchain Will Disrupt
Which Blockchain Myths You Believed?
These Blockchain myths highlight why it is essential to comprehend the basics of any new technology that you might believe in. Sometimes, these misconceptions lead to wrong understandings that might discourage people from exploring a promising technology!