Blockchain Technology has increasingly gained importance over the past years. From disrupting the working of industries to changing the way we live our day-to-day life, this technology has seeped into everything. This transformative technology is seen by many as the ultimate solution to all our modern-day problems.
No wonder, people refer to blockchain as the genie of the 21st Century. However, with this blockchain has developed a mystical aura. It is surrounded by both believers and skeptics. These skeptics have spread a number of myths about blockchain. These blockchain myths have spread around the globe.
But before going further, let us understand what is blockchain:
Blockchain technology is a distributed ledger that offers a way of recording transactions or any other kind of digital interaction. It stores and records everything in a secure, transparent and efficient way. The blocks in a blockchain are made up of pieces of information that are entirely digital in nature. These blocks secure the information with the help of cryptography which is almost impossible to break.
To give you an insight into this emerging technology, here are the top 5 myths about Blockchain technology that you should be aware of:
- Blockchain and Bitcoin are the same: The popularity of Bitcoin has overshadowed the stage for Blockchain. This has spread the confusion that both blockchain and bitcoin are the same. Blockchain is the technology that provides an open and distributed ledger that records everything in a transparent method. On the other hand, Bitcoin is a cryptocurrency that was built on Blockchain. Hence, blockchain can exist without bitcoin and it has disrupted a number of industries. However, Bitcoin or any other cryptocurrency cannot exist without blockchain.
- Blockchain can only be used in the world of finance: No doubt, the first sector blockchain stepped in was finance. With the birth of cryptocurrency, the financial world witnessed a wave of change. However, the technology itself has transformed a number of industries. Today, blockchain has found its utilization in a number of fields like healthcare, real estate, etc. Furthermore, it has also transformed the working of governments.
- There is only one type of Blockchain: In today’s tech-powered world, there are majorly three types of blockchains:
- Public Blockchain: In this kind of Blockchain, anyone can read and write on the blockchain
- Private Blockchain: Here there is one in charge who manages and regulates the blockchain. Hence, it is not open to everyone to see and edit.
- Consortium Blockchain: In this type of blockchain, there is one in charge with a group of people or a company which together makes a decision which best suits the blockchain.
- Cryptocurrencies are volatile hence, blockchain is also unreliable: This myth was spread due to blockchain’s initial association with cryptocurrency. However, blockchain has a number of other applications except for bitcoin and cryptocurrency. Hence, one must not associate the reliability of blockchain with cryptocurrency.
- The information present on the blockchain is not publically available: One of the most common misconceptions surrounding this technology is that it is completely secretive. In contrast, most blockchains are public and traceable.
Like any other innovation taking shape in this world, blockchain has a number of initial misconceptions and myths. However, with time, these misconceptions will find their way out and turn the skeptics of the technology into its believers.