Blockchain technology has emerged as one of the most hyped and talked about technological inventions. While it reveals a lot of positive feedback from the tech industry post its inception there are still many myths around the community.
Acknowledged as a Distributed Ledger, the technology provides some of the leading developments in its data transactions with a bit more secure, transparent, and efficient computational architecture.
Under its functionality, the database is maintained by a continued growing set of data termed as blocks when composed together form a distributed peer-to-peer connected chain.
To recall, A Blockchain architecture is based on two key components:
- Blocks — The structured sequencing of the data involved in the transactions.
- Transactions — The steps or operations taken by the users.
Myths and Facts of Blockchain Development
Myth 1: Blockchain Comes Free
Fact: The Concept or the architecture is common or open-sourced to learn for all but when it comes to driving a blockchain-based application or other resources then it comes with a cost.
Due to the heavy computational processes along with the resources to perform the operations involved the statement to say it’s free is not justified.
Myth 2: Blockchain is One
Fact: Blockchain gets derived as a concept that can be implemented to attain many technological advancements.
With its different types and architecture, blockchain can not be stated as a single technology rather it is a service-based mechanism to innovate on its concept.
Bitcoin, Ethereum, Hyperledger are certain examples of blockchain-based technologies.
Myth 3: The Blockchain is a Cloud database.
Fact: Blockchain works on the algorithm that stores data in the form of blocks with every occurring transaction; these blocks are not documented or can be presented in any storage form.
It works on a peer-to-peer networking and allows controlled access. Hence, in reality it’s not a Cloud-based database management.
Myth 4: Blockchain is the Most important next-gen Technology
Fact: Blockchain during its initial days was talked by many to be a path-breaking innovation for technology architectures supporting businesses across domains.
Although it brings the benefits of high transaction speed and cost reduction there are flaws like data fraud with online transaction ledgers and other shortcomings that make it certainly be a bit far more away from being a widely used next-gen technology for businesses.
In between, if you are interested in knowing the top 7 real life use cases of Blockchain Technology, click here.
5: Blockchain only developing financial services
Fact: As blockchain started its relevance in the market it started it all with the cryptocurrency development with one of the leading crypto-based financial entities termed Bitcoin.
Although the financial sector has been one of the imminent sectors for the growth of the blockchain as a technology-based service, it has other applications too that have impacted various other sectors.
Blockchain has been utilized in developing leading solutions in healthcare, real-estate.
Myth 6: Blockchain means Bitcoin
Fact: It can’t be denied that too many innovations of Blockchain technology came into light majorly post the arrival of Bitcoin.
Bitcoin is a cryptocurrency that follows the architecture of blockchain technology that allows the development of crypto-based entities for financial transactions..
Bitcoin with its virtual transaction-based financial service has become a highly popular blockchain-based technology that is utilized widely.
Thus it makes it clear that Bitcoin is derived from blockchain rather than being the only blockchain medium.
Myth 7: Blockchain can only be accessed by Big-Corporates
Fact: This comes out as a false myth as the Blockchain technology comes with the ease of operations that allows not just business but any individual to be able to work upon the technological implementations for developing leading blockchain solutions.
With a working Internet connection, one can avail and utilize the blockchain services anywhere around the globe.
As we have detailed the myths with relevant facts it let us reflect on and understand blockchain technology in a better way.
Even as Blockchain technology is the latest innovation and is not a fully-secure technology yet it comes with the advancements that make it a good choice for businesses to develop their services on.