Debunking 5 Common Myths About The Blockchain
It’s about time to let the cat of the bag
It’s estimated that the amount of digital ink spilt over blockchain inaccuracies equals the volume of water in the Atlantic ocean. Our opening statement is obviously a lie, but it does sound interesting, doesn’t it? That’s the same formula used to describe all things blockchain since the day the new technology started becoming a part of our lives. Today, we’re here to change that. We’re here to debunk some myths and shed some light on what blockchain is really about.
Myth #1: Blockchain is only used for cryptocurrencies
The terms have been and continue to be used interchangeably, but the blockchain is not the same as, or only used for, cryptocurrencies. The reason behind this confusion stems from the fact that cryptocurrencies were the first use case that helped blockchain shine.
More specifically, the rise and rise of Bitcoin is what inserted the term blockchain into the digital dictionary. The truth of the matter is that blockchain is a breed of decentralized technology that is and will continue to be used in innumerable use cases. From gaming and Blockchain-as-a-Service (BaaS) to transforming the government sector, blockchain can do so much more than provide an alternative payment system.
Myth #2: All data on a blockchain is public
The word public is a big part of what describes a blockchain. While the word holds some merit and truth, it should always be used in the right context. On a public blockchain, transactions are indeed visible. However, identity is not associated with transactions. The partakers in any given transaction are symbolized by a random string of characters known as a blockchain address. That string is unique to each person, but it does not necessarily showcase their physical identity.
Moreover, a piece of data, like documentation, can be kept in traditional cloud storage and be represented with a hash. That would mean nothing to anyone looking at the hash; more importantly, nobody would be able to connect to the document in the cloud.
Myth #3: Blockchain has hit a plateau
PwC forecasts blockchain technology will have a $1.76 trillion impact on global GDP over the next decade. If numbers are not your thing, let’s backtrack and see where this myth finds a breeding ground.
Blockchain is trying to find its footing in different sectors, being a new technology. It’s a process of trial and error, and volatility should be considered to be part of the equation. That volatility is sometimes perceived as the technology hitting the ceiling and fulfilling its potential. That couldn’t be further from the truth. If anything, blockchain is just getting started.
Myth #4: Blockchain is a hotbed for illicit activity
We’ve recently touched on the darkverse and the potential of this new technology to be used with bad intentions in mind. Is there such potential? Sure. All technologies we’re accustomed to possess weak spots and areas that could be taken advantage of with malicious intent.
Blockchain might not be bulletproof, but it’s as safe as an underlying technology has been. The promising thing about it is that we’re still early in the journey of this technology. Law enforcement officers and agencies specializing in this sort of crime are novices with a lot of ground to cover, making life even more miserable for wishful criminals.
A little learning is more dangerous than complete ignorance. Blockchain is experiencing nothing less than what all disruptive ideas and technologies had to go through — face resistance and misinformation regarding what they are and can do. These myths will eventually turn into jokes, evaporate, and disappear in due time. Blockchain needs time to establish itself and iron out the details.
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