As we all know, Blockchain is an innovation that is here to stay and in our previous post, the term was explained in detail. In this article, I will be debunking 5 fallacies and shedding more light on Blockchain Technology.
MYTH 1: Blockchain will take years to be implemented
Blockchain is not an idea still waiting to be morphed. It is happening right here and right now. Several sectors such as finance, agric, real estate, and politics (voting) have started implementing and using blockchain technology because of its outstanding features.
MYTH 2: Blockchain is only used for cryptocurrencies
Although cryptocurrency is credited with bringing blockchain to the forefront, the two concepts are not interchangeable. While it is true that the technology behind cryptocurrencies is Blockchain, the Blockchain can be used in various industries and a perfect example of such an industry is the Real estate industry.
MYTH 3: Blockchain is being controlled by a person or a group
A key feature of blockchain technology is that it is decentralized. With its decentralized system, the network is not controlled by any entity, organization, or person. Therefore, it is secure, reliable, and transparent. Further, there are fewer points of failure, user control, and fraudulent activity.
MYTH 4: The Blockchain is a cloud-based magical database
Blockchain, also known as distributed ledger technology, is often misunderstood as a cloud-based database. Blockchain is conceptually a linear list of simple transaction records – a flat-file.”Because this list is ‘append-only,’ items are never removed, but the file expands endlessly and must be copied in each peer-to-peer network node.”
No physical information like a Word document or pdf file can be stored on the blockchain. A distributed ledger can only provide a “proof-of-existence” for a document when a code is included that certifies its existence, but not it’s content.
MYTH 5: Every transaction on Blockchain Is Anonymous
Another popular misconception about Blockchain is that all transactions that take place on it are anonymous. As opposed to anonymity, the technology relies on pseudonymity. Blockchain records only the wallet’s public address without revealing its owner’s name.
In conclusion, the misconceptions surrounding blockchain are ludicrous and must be debunked in order to move forward. Although the technology is far from perfect, there is no question about the potential. To improve the technology, it is vital to uncover the truth behind it.