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Blockchain myths busted

  • 25 October 2018, Administrator
We are halfway through the year 2018, and still have our minds fogged with myths surrounding Blockchain. Despite posing numerous opportunities, we have limited the applications for the technology, thus inhibiting its potential. Here we will talk about some of the myths, and how they are not true. This should help you move onto embrace the new-age technology for its true potential.

Myth#1 It is available for free

How we wish this were true but, the fact remains, there are no free lunches in this world. So, as good as this sounds, it is time to burst the bubble and tell you that Blockchain too comes with a cost. As of today, Blockchain is as expensive as useful.
When you say Blockchain, you are talking about multiple algorithms, numerous computers and a final error-free result. The computing power, the speed, the performance are all a result of high-speed, power-drawing infrastructure that you will need to invest in.
We are talking about quite a lot of devices, the electricity and even the programmers. So, it is best to say Blockchain is not really free. If anything, it is quite an expensive technology.
That’s precisely why you should think through the reasons to use Blockchain for your idea, validate it, and make sure there is no other solution.

Myth#2 Blockchain is full-proof

One of the most popular use cases of Blockchain is recordkeeping. The records are not just saved but also visible and permanent. Any modification in the record will be visible to one and all that too with immediate effect.
Most of you, as a result of this potential of the technology, believe that it is full-proof. Nobody can place an attack on the system; the database is immune from cyberattacks. Wrong again! No system in this world is full-proof but, Blockchain is definitely much better and superior to the technologies that are available at this point in time.
The strength of Blockchain’s security lies in the One-way encryption and the algorithms it is based upon. If they turn out to be weak, your Blockchain is vulnerable enough for all kinds of attacks.
You will need to make sure the protocols used to build the underlying security of the Blockchain is not breached.

Myth#3 No commercial application possible

As most people are unaware of how the Blockchain technology works, they believe it is limited to transactions and Bitcoins. In fact, most people think it cannot be used for the commercial applications. This is one of the reasons why most industries are still not open to adopting Blockchain, though it would prove to be extremely useful to them.
On the contrary, Blockchain is highly effective in any circumstance that involves Consensus, Trust and Transparency. Healthcare can use it to manage the patient records and view it from origin. Tracking of supply chain has become easy with Blockchain. There are several other commercial applications for Blockchain, which makes it a useful technology in several industries other than finance.

Myth#4 Blockchains are used for everything

The Blockchain protocol is expressed with code and there are no standards defining it as of now. This code is highly powerful but, even then it cannot provide you with all types of solutions. Currently, Blockchain has limited use. It will take time for Blockchain to move beyond this, as it involves high levels of algorithms, and proficient developers to move beyond its current application, Cryptocurrency.

Myth#5 It is a database in cloud

Yes, most people believe Blockchain is actually a database in the cloud that appears from nowhere. The truth is it is a flat file that records a list of simple transactions in a linear fashion. You cannot store physical information in the Blockchain. It is completely virtual, and the distributed ledger offers a proof-of-existence. There is a code within the ledger that proves the existence of the file that you are counting upon. The access to the file is controlled by the owner of the information.
Moving further There are other myths recorded too such as there is only Blockchain, whereas the truth is you have public and private types of Blockchain. Here, we have covered the popular myths of Blockchain, which have led to a slower adoption of the technology. These myths busted, you should be able to embrace the technology and think of alternate use cases for the same. If you have any questions on Blockchain feel free to interact with us and our team of Blockchain Evangelist, and Blockchain Strategist will ensure to answer all your queries.

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