Debunking the 5 Biggest Myths & Misconceptions in Blockchain

“Blockchain” is the term introduced in 2008. This technology has led to the build-up of a completely new industry. If you are someone who has been a part of the world of banking, cryptocurrency and investing, then we are sure that you must be aware of this term. Blockchain is basically the record-keeping technology utilized for the bitcoin network. It is a sort of decentralized and distributed public ledger. But the actual definition of the term is quite easy to understand.

When we are talking about Blockchain, we mean blocks of digital information which is stored in a chain of the public database. A single block has the capacity to store thousands of transactions.

Blockchain technology has a deep impact on other industries as well. Due to its influencing nature, a lot of people are getting involved in the world of Blockchain technology. It has been in the market for a considerable time period, but you will get to notice several myths and misconceptions in Blockchain. It is high time to clear up all these myths and misconceptions in Blockchain.

Image for post
Image for post

Blockchain technology can be used for the purpose of storing data related to the exchange of property, votes for a candidate, supply chain, etc. There are lots of businesses on the Blockchain methodology. Deloitte has conducted a survey of 1000 companies in 7 countries. They have been using Blockchain integration for their day to day business operations. According to the survey results, 41% of the companies have been thinking of implementing a Blockchain application within the next year. While 31% of companies have already been running a business on Blockchain technology.

Blockchain can be used for banking purposes. This technology can be utilized for cryptocurrency development as well. One can use the Blockchain technology for keeping records of properties also. The healthcare industry, supply chain as well as smart contracts, too can utilize Blockchains effectively.

Even after this much utility, people believe in certain myths and misconceptions in Blockchain, which needs to be debunked. It is absolutely useless to stay backdated and keep believing in baseless myths. Instead, one should make attempts to know the truth.

The following are some of the myths which are quite widespread in the market. We are also throwing light on the actual truth.

  • There is a single Blockchain only:

This is a totally false statement. Several Blockchains already exist. Blockchains have associations with Bitcoin. It is a public or open-sourced Blockchain. This one has links with cryptocurrency Ether.

Some private Blockchains are available too. They do not have any link with digital currency. The Gem Health Network is the instance of an organization that uses this kind of Blockchain.

  • The anonymity of Blockchain transactions:

It is true that some digital currencies are there which will be difficult to crack because of the enchanted privacy features. But it is possible to trace a lot of Blockchain transactions too. An individual who initiates a transaction will not have his name publicized. But the address which is related to receive or send funds will for sure be accessible.

It is a myth that bitcoin and crypto transactions are anonymous. Those who are involved in any kind of cryptocurrency development procedure need to comply with applicable laws.

  • Cryptocurrency and Blockchain tech is meant for illegal activities:

Many years back, bitcoin was associated with the illegal dark web market called Silk Road. But Silk Road was closed in the year 2013. Still, people now associate bitcoin with illegal or criminal activity.

But the truth is that a large number of law-abiding citizens have been using the Blockchain tech, and they also own cryptocurrencies. There are several Blockchain-based projects which aim at making our world a better place to live in. These projects are absolutely legal.

  • Blockchain is meant for only the finance sector:

When people think of Blockchain, they tend to think of cryptocurrencies too. Hence, they associate Blockchain technology with the Finance Sector. But the truth is that Blockchain tech is being extensively used in a lot of other sectors. It is not just limited to the field of finance. You cannot even imagine how deeply Blockchain tech is involved in a wide array of sectors other than finance.

Blockchain has a potential that goes beyond cryptocurrency development and the financial sector. Blockchain is a list of records. It can extensively be used in different types of industries for the purpose of recording any kind of data. The real estate industry, the government sector, as well as the healthcare industry, can utilize Blockchain technology.

It is baseless to believe in myths and misconceptions in Blockchain. You can go through the rumors mentioned above related to Blockchains, and we are sure all your doubts will get cleared. Once you are aware of the truth, you can hire a Blockchain development service provider for the purpose of developing your business. Just be cautious enough to hire an effective and experienced Blockchain development company.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store