Myths About Blockchain Technology

About two decades back, who would have thought the world would reach the era of digital currency? But, eventually, we have reached the age of digital currency dominating and have given way to the Blockchain network.  

Many industries rely on the Blockchain technology and have been working with it, but still, the majority believe some of the myths associated with the technology, making people not opt for it. 

These myths not only create confusion but also give users, especially beginners who know nothing about Blockchain technology or cryptocurrency, wrong information.

To bust these myths, we have a post ready for you. So, if you are eager to dive deeper into the details, read this article.

Blockchain Is Only Useful for Finance

It is not limited just to the finance industry, but Blockchain serves the broader criteria. The fact that it was designed precisely for use in the financial sector makes people believe it, but it has evolved to serve in various other sectors, including logistics, healthcare, real estate, and more. 

Its initial association with Bitcoin has made way for this reason, but now you must know things have changed, and Bitcoin can be used in different sectors. Blockchain technology enables secure, transparent, and tamper-proof data recording, which has proven beneficial beyond finance.

Blockchain and Cryptocurrency Are the Same

This might be something that you must have believed or still believe too is that Blockchain and cryptocurrency are the same. But, this is absolutely wrong as both have different core operations. As a decentralised digital ledger, Blockchain helps to record and store data across multiple computers, and cryptocurrency uses the technology. 

Also, blockchain technology’s applications are not limited to just cryptocurrencies. Businesses use it to manage their supply chains and track goods. Do not confuse the two; Blockchain and cryptocurrency are different technologies.

Blockchain Is Fully Secure

Known for its strong security features, many people believe Blockchain is completely secure. However, that is not true. Even though it is a decentralised technology resistant to certain types of attacks, it is not 100% safe. What we mean is that attacking Blockchain is possible.

Like other technologies, Blockchain has vulnerabilities. From data tampering to a 51% attack, various threats make Blockchain risky. Because of this, you need to be careful when using Blockchain. Though highly secured, it is not completely safe.

Blockchain Is Always Decentralised

A key feature, decentralisation, is always highlighted in the Blockchain. But what you don’t know is blockchain technology can be public or private. Regarding public blockchains, decentralisation is an important feature that allows you to access them easily. All participants have equal rights in public blockchains and can validate and record transactions.

Different from public blockchains, private blockchains operate differently. That’s because, a single organisation or a group of entities control the network and restrict access to authorised participants only. This is one reason, why private blockchains are faster and provides better control. However, they lack transparency like public blockchains.

Holding immense potential, understanding blockchain technology is important. This is especially crucial for those who want to use the technology, but not sure how to. A good starting point, learn about blockchain technology and clear misconception, so you know what it is.