6 Myths about Blockchain and Cryptocurrency That You should Disregard Today

By POOJA BISHT |Email | May 17, 2019 | 1710 Views

Blockchain technology is going to be the game changer in the upcoming years with the benefits it can offer to the society, but its a huge concern that still the technology is confused with Cryptocurrency (in fact with Bitcoin).  Blockchain becomes more popular since the arrival of Bitcoin when Santoshi Nakamoto released it in around 2009 and the general conception about Bitcoin and Blockchain as same developed among the people.  In this huge myth of understanding and taking both the terms same the benefits that Blockchain offers often gets faded.

"It's always better to explore and dig a myth to know the truth behind than to live with it the entire life." 
In this article, we will explore the 6 myths about Blockchain and Cryptocurrency which you must know and Disregard today. These are:

  • Blockchain is Bitcoin
Since the advent of Bitcoin and the popularity of Blockchain, both Bitcoin and Blockchain are taken as same by the people. But this should be understood here that Blockchain is the underlying technology of Bitcoin and is used for the transaction of Bitcoin and not bitcoin itself. Blockchain is an open, distributed ledger which records a peer-to-peer transaction. While Bitcoin is a cryptocurrency or a digital currency (you can say) which is exchanged between two parties.

  • Blockchain is only of one type
Itâ??s a general myth about Blockchain that Blockchain is only of one type And that is public while there are three types of Blockchain that exists:

  1. Public Blockchain: Public Blockchain is open to the general public and is transparent in nature. : Anyone can read, write and audit a public blockchain. Anyone can review anything in a Public Blockchain.
  2. Private Blockchain: A Private Blockchain is not open and transparent for the public but between the individuals who are in charge. The only selected group of people can read, write and audit a Private blockchain
  3. Consortium or Federated Blockchain: A group of companies or business individuals takes control of a Consortium or Federated Blockchain. The Consortium or Federated Blockchain is made for the individuals or businesses working together for some benefits or decisions.  Here Members of the consortium can read, write and audit the blockchain and make transactions/decisions.
  • 'Cryptocurrency and Blockchain Are used in Finances only
It's a general and the most common myth about 'Cryptocurrency And Blockchain that they are used only by the financial sector and are used mainly for the transactions. While this is not the case. Blockchain is the technology which is not used only for making transactions as it does with cryptocurrencies but it can be used for sharing other pieces of information as well on the distributed ledger. Also, the technology can be leveraged in other sectors like Agriculture.

  • Blockchain Is used for Storage of data
Many people think that Blockchain is best used for Storage of data as each transaction gets recorded in a blockchain. But it should be noted that blockchains are best used for the exchange of cryptocurrencies or information.

  • Blockchain is 100% secure
Due to the decentralized nature of Blockchain a high level of security offered in the technology, there is much hype over the security that Blockchain is 100% secure. No technology is 100% secure. As compared to the centralized systems where it's easy to break and hack the system there is a lower probability of  Blockchain technology to be crashed (because each node is connected and every user in the network has the copy of every transaction). But saying that Blockchains are 100% secure is also not right.

  • Blockchains are not reliable 
This is my personal experience of what people feel about Blockchain. As Bitcoin and Blockchain are considered the same and the reliability of Bitcoin is a concern for the world where many of the countries have also banned the usage of Bitcoins, Blockchains are also considered unreliable and unsafe to use. Because people take Blockchains and Bitcoin same so the unreliability factor is always surrounding Blockchain.

The Myths about Blockchain and Cryptocurrency is the main reason behind the 'no' implementation of Blockchain in several countries. Once this myth is cleared and the two are separated from each other, the implementation of powerful technologies like Blockchain will become easier. 

Source: HOB