The Early 21st century is now regarded as the era of Blockchain technology which has gained immense momentum and interest within the whole technological world. But as this platform grows larger there are several myths or just misconceptions that have grown to exist, which this article seeks to debunk.
For all newcomers into this Sphere, Blockchains are a continuous series of blocks that store information encrypted by cryptographic proofs that are verified through a public network of nodes. Each block is intrinsically tied to the previous blocks in a chain-like-pattern, and where the information can only be assessed but not changed once its recorded in this ledger. This system is self-correcting and has no central authority who has authoritative access over the entire system.
Myth 1: There is only One Blockchain
A lot of people seem to have the impression that there is only one large blockchain which host all applications, sort of like the internet. There are in fact hundreds of blockchains which already exists and each are independent of each other. Each of these blockchains are built with a purpose and they may/may not be open and be available for the entire public.
Myth 2: Blockchains are Unhackable
This is one of the biggest misconceptions of blockchains and usually used as the main selling point that they are truly permanent and transparent. Blockchains are not inherently unhackable, but their distributed nature makes them much more difficult to hack than traditional systems which are usually centralized in a location.
Myth 3: Blockchains cannot be linked together
Blockchains are often thought to be disparate and specially built for a single purpose hence attributed to their uniqueness and unlinkability. But this is not true. There are currently startups such as Consensys, Monax and Tendermint that are taking existing open source networks and merging them to make them scalable and to enhance their performance. Such blockchains she common voting, tokens and communities to create a coherent ecosystem.
Myth 4: Cryptocurrencies are only used for untraceable black-market transactions
This is probably the oldest and feared aspect that is obstructing mainstream blockchain adoption, that such tokens are create to evade the law and used as a mode of payment in black market transactions. While it is true that some of these currencies are used to perform illegal activities, but their uses are not limited to that. There are several blockchains whose currencies are working to solve real world issues like poverty, financial inclusion and work efficiency, to name a few.
Myth 5: Blockchains have no Business or Commercial applications
Blockchains are primarily a store of information which are secure, verified and permanent which cannot be easily manipulated to cause harm. It creates a perfect platform to store sensitive data such as medical records, government records, financial records and so on. And these information could be transferred across the entire world in a fast, efficient and secure manner. Employing this technology, Business will no longer have to deal with slow, outdated systems in order to maintain privacy. For instance, a MNC (Multi National Corporation) which has branches across various parts of the world can access the repository of information anywhere in the world in a matter of seconds without any loss of information in the most secure environment. Technology analysts are already visioning the way blockchains will transform our view of cyber security.
Blockchains are the next big thing in the world of Technology.