In this post we will talk about 5 major myths about the Blockchain technology. As now a days Blockchain technology has gained very much popularity due to some of its main features like anonymity, hack proof, free of cost etc. We will talk about each further in the post. Let's start with the most popular myth.
1- Cryptocurrency Transactions Are Anonymous :- It is being said that cryptocurrency or Bitcoin transactions are anonymous but don't forget that Bitcoin Blockchain is a public ledger which means that anyone can trace that how much Bitcoin is sent from which address to which address. Government of various countries has made a relationship with the exchanges in the country to map Bitcoin addresses to the owners which will remove the anonymity feature of Bitcoin transactions.
2- Blockchain is Immutable or Hack Proof:- It is also said that blockchain transactions can never be altered or being hacked but as the technology advances the hackers or the malicious attackers also becomes smart. A very famous attack called 51% attack, which is once in theory is now became reality and some of the cryptocurrencies has become the the victim of that in the past days. In this attack the attacker makes 51% of the networks computation power to agree upon a false transaction. By doing that the false transaction becomes the truth and hence the Blockchain record can be altered. Their are other attacks like Double Spend Attack which can hack or can alter the blockchain.
3- Blockchain is free of cost:- Blockchain is not free of cost as to maintain the trust or the genuinity of the blockchain transactions their is a need of third party computation power to solve complex problems and to produce or add genuine transactions to the chain this requires a lot of computation resources for which someone has to pay.
4- Zero Trust:- According to blockchain technology it is based on a trust less consensus which means that you don't need to trust anybody or any third party for your transactions to verify and confirm but it is false in blockchain it requires miners to verify the transaction and add a block to the blockchain. You will also need to trust the code, the cryptography as well as the mathematics for the functioning of a blockchain.
5- Bitcoin's Blockchain can be shut down:- All of you have heard that Bitcoin is going to be banned in this or that county or it is going to be shutdown or many other rumours about Bitcoin but all these are myths as Bitcoin in not owned by anyone. Bitcoin is run by the people. Until there is Internet running somewhere Bitcoin is also functional their. For shutting down Bitcoin you have to shut down Internet. It is beyond the central authorities as it is decentralized network which is not being runned by any single person or a group. So it is nearly impossible to shutdown Bitcoin network.
I hope this post will give more clarity about the Blockchain Technology and add something to your knowledge about Blockchain.
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