{"id":20722,"date":"2021-09-15T09:31:31","date_gmt":"2021-09-15T08:31:31","guid":{"rendered":"http:\/\/bitcoinprbuzz.com\/?post_type=blog&p=20722"},"modified":"2022-01-31T08:33:32","modified_gmt":"2022-01-31T08:33:32","slug":"top-myths-and-misconceptions-about-enigmatic-blockchain","status":"publish","type":"blog","link":"https:\/\/wire.bitcoinprbuzz.com\/blog\/top-myths-and-misconceptions-about-enigmatic-blockchain\/","title":{"rendered":"Top Myths and Misconceptions about Enigmatic Blockchain"},"content":{"rendered":"
Bleeding edge technologies are often subject to controversy, especially when there is a lack of awareness surrounding them. Discussions — lacking the necessary understanding — with friends and on social media can also lead to them forming misinformed opinions.<\/span><\/p>\n Blockchain is no different. Even after being in existence for 12 years, the technology remains a <\/span>mystifying topic for many<\/span><\/a>, leading to much confusion. With varied perceptions coming from the public to government officials, there are many myths and misguided facts that surround the technology.<\/span><\/p>\n Here are just a few of the most common misinterpreted facts and myths about blockchain.<\/span><\/p>\n <\/p>\n A couple of years ago, I found myself at a gathering, sitting with a high-level banker and a national economic-financial policymaker. As the conversation steered towards my career in promoting blockchain, they took an aggressive stance towards cryptocurrencies. The next half hour was spent telling the two apart.<\/span><\/p>\n Yes, blockchain was created by Satoshi Nakamoto to drive the first modern cryptocurrency, Bitcoin. But that\u2019s it. This is a technology that runs digital money and <\/span>isn\u2019t a <\/span><\/i>cryptocurrency. In fact, crypto are just one of the many different applications that can run using blockchain. Blockchain is simply a secure and trustless technology that can digitally record data. You can use it for just about anything that can be represented in digits. Supply-chain, government-issued IDs, salary systems, educational records, gaming — you name it.<\/span><\/p>\n <\/p>\n This is both a myth and a fact, depending on the blockchain in question. Blockchains do offer a higher level of security because of the sophisticated hash-based cryptography applied to protect data. It is physically impossible, at the moment, for anyone to guess your private key and access your data or assets on a typical blockchain — even the most modern supercomputers aren\u2019t capable of this.<\/span><\/p>\n The network security, that is, how safe the network is from malicious tampering or hostile takeover, is also unprecedented when dealing with larger ones like Ethereum and Bitcoin — although smaller networks are still relatively vulnerable to being exploited.<\/span><\/p>\n <\/p>\n Private blockchains or permissioned ones also can be vulnerable to instances in which transactions or data can be overwritten, since private or enterprise blockchains are controlled by firms and certain such administrative rights are assigned to specific users.<\/span><\/p>\n <\/p>\n By eliminating the money-hogging middlemen in the whole ecosystem, one would tend to believe blockchain is free. People believing this end up surprised to find that this is not the case when they try to use it. There are a number of consensus methods used today (proof of work and proof of stake being the primary ones) and this requires either dedicating computing power or staking finances, both requiring compensation. When making any kind of transactions or transfers in a blockchain, you will need to pay the nodes and miners who maintain the network a fee as compensation for their efforts.<\/span><\/p>\n While an enterprise blockchain may not have a transaction charge, it does pay for it through computing power consumption.<\/span><\/p>\n <\/p>\n The world woke up one day to believe that blockchain is a planet killer, all due to <\/span>one little Tweet<\/span><\/a>. While it has been known for some time that the top blockchain networks are consuming a lot of power, crucifying them is simply misguided.<\/span><\/p>\nBlockchain = Cryptocurrencies<\/span><\/h2>\n
Blockchain is Unhackable<\/span><\/h2>\n
Blockchain is Free to Use<\/span><\/h2>\n
Blockchain is an Ecological Disaster<\/span><\/h2>\n
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