Cryptocurrency or blockchain have always been in the light due to its umpteen uses and skyrocketing prices. Since the technology is quite young and is changing swiftly, there is also much misunderstandings and confusion brimming in the market.
Further, blockchain offers a time stamping of multiple layers to provide immutable transactions. However, the technology still isn’t safe, and there are many more things under the hood. Read-on to know the key things that are fueling the hysteria of blockchain:
Myth1: Blockchain Is Quite Scalable:
It’s not! The blockchain is not truly scalable as compared to other conventional or server-based transaction methods. However the technology is only scalable for a specific type of transactions and for some small payloads that too up to certain limits. This also means that you can’t pile up information on the blockchain.
Myth2: Blockchain = Bitcoin:
Although blockchain is the root technology, it is not as popular as bitcoin. Also, people get confused between the two technologies. Bitcoin is a cryptocurrency that one can exchange directly between two people. However, blockchain allows peer-to-peer transactions that are recorded on the distributed ledger through a specific network. You can read more on how crypto help community, in case you want in-depth knowledge.
Myth3: Information On Blockchain Is Not Available Publically:
One of the most common fallacies in blockchain technology is that it is not public. However, the fact is you can easily control or trace the activity on blockchain. There are no secrets and no criminology linked with this technology.
Myth4: Transactions Using Crypto Are Anonymous:
Another common misconception about the crypto transaction is that all transactions associated with the technology are anonymous. However, the fact is that bitcoin is a public ledger that keeps the information about how much data is sent from one address to another. To achieve anonymous bitcoin transactions, the setting up of different digital identities in a 8-step process is required.
Myth5: It Is Safe And Secure:
Although the blockchain completely relies upon the cryptographic standards, the tricks that ensure privacy are out from the blockchain standards. However, the standards are only understood by crypto experts.
The technology also ensures the integrity of all transactions, but it is not trustworthy and safe. You have to guarantee the reliability by ensuring that companies who are storing your records in blockchain are genuine and trustworthy.
Myth6: New Blockchain Is Created With X Feature:
There’s no evidence that the community-driven blockchain products are safe; they are just being moved aside by private users who use them in various ways. However, you can rely on the large communities to ensure the safe cryptographic implementations. Also, there are no specific features that are created using blockchain. Only the open-source Blockchains with so many communities and the install-plus-adoption bases occur. Besides, other blockchains are lab experiments that don’t have any practical use.
Myth7: You Can Use Blockchain For Everything:
Although the technology is quite powerful, it is not magical. Some people believe that it’s just an authority with some mathematics which doesn’t involve government or lawyers. Although you can use blockchain for complex and technical transactions, the use of technology is still inefficient in many cases. And the digital currency is still far from the mainstream.
Myth8: Blockchain Technology Is Only Used In The Financial Sector:
Although financial industry was the one to use this technology, it was not only the one. The technology has numerous areas of application some of them are healthcare, personal care, real estate and much more. You can also use blockchain to store medical-data as a proof to provide access to the medical companies in exchange for currency.
Myth9: Blockchain’s Only Application Is Cryptocurrency:
Although blockchain and cryptocurrency go hand-in-hand, they work amazingly on their own. Also, the usage of blockchain is not limited to, every industry and businesses can use this underlying technology comprised of distributed ledgers.
Myth10: Blockchain Will Be The Face Of All Business Transactions:
The blockchain is often considered as the technology that will manage all transactions and change the way of business. However, when compared to current transaction methods, blockchain takes more time to confirm transactions. It is quite useful if there’s need for security verification and private transaction records.
So, with all myths debunked, where does the savvy technology leave us? Blockchain, beyond cryptocurrencies, has many applications, and it can be a game changer in the long term. As of now, it has already been commoditized.