Have you heard a lot about blockchain and its booming popularity in recent years? Well, that’s not surprising. It’s not an exaggeration to say that blockchain is becoming one of the most influential technologies around today. However, as with any other new technology, there are some misconceptions about what it is and what it does. This blog post will address some of the most common myths about token marketing.
1. Blockchain is limited to finance applications
Finance companies are increasingly considering whether or not to use this technology because data from all transactions could be distributed and stored on a network of computers around the world rather than on a central computer system where hackers can easily attack them. However, that’s not to say that blockchain is only useful for financial purposes. In fact, it can be applied to any application that requires a secure ledger of transactions or agreements.
For example, you could use a blockchain network for real estate transactions, tracking the ownership of art pieces or register vehicle ownership in a certain country.
In practice, the decentralized approach allows all participants to record information and modify it in the system without the need to go through a centralized party first. This makes information more secure and reliable since the changes are distributed among many nodes on the network and not stored on one server which could be vulnerable to attacks.
2. Blockchain is a “secure” technology
There is one misconception that blockchain is completely secure and there is no way to break it. The truth of the matter is, while blockchain can be designed to be fairly difficult to hack, it’s not impossible. Just like with any other technology, someone will eventually find a way to exploit the system in order to gain unauthorized access. As with most cybersecurity issues, we simply hope that security measures will be strong enough until someone figures out how to break them.
3. Blockchain processes transactions immediately
While most blockchain implementations are fast and efficient, the distributed nature of information requires some extra time for verification and validation before it is written into the ledger. Usually, this is not a serious issue since it only takes a matter of seconds before the transaction or block is validated by a news approved site. However, if you want to use blockchain for micro payments , it might be better to use another technology.
4. Blockchain nodes are anonymous
While every node on the blockchain network has an ID and IP address, it’s possible to hide your identity from being revealed. The general idea behind this is that you are identified as a string of random letters and numbers which provides no direct information about your real identity. In other words, transactions can still be traced but there is no way for anyone to link them back to you easily. If you want more privacy then you can use Tor browser and other anonymous tools .
5. Blockchain is new and only a few companies are using it
This is a common misconception and one of the reasons why many people consider blockchain to be some kind of “geeky” technology. In reality, various companies are already utilizing this technology in different ways. For example, Walmart is planning to use it to track its food supply chain, while Uber has implemented the use of blockchain in order to speed up their ride verification system. The list goes on and on, so it’s not unique to finance alone.
6. All blockchains are similar
While there are several types of blockchain networks which function differently, each version will be based on a couple of core ideas. For example, the original Bitcoin blockchain was designed to provide a payment system based on peer-to-peer transactions for Blogger Outreach which would be validated through miners and recorded on a public ledger. Ethereum , on the other hand, was designed mostly as a programming platform with advanced capabilities.
7. Blockchain networks are “faster” than other systems
Blockchain was developed as an alternative to centralized systems which were often subject to various bottlenecks. While this approach is usually fast enough for most applications, it’s still nothing compared to centralized systems in this regard. However, if speed is critical for your application then you might want to look elsewhere for your solution (like: Hyperledger Fabric or R3 Corda ).
8. Blockchain can be used in any industry
Just like any other software or technology, blockchain is not a universal solution which will work in any application. While you could use it for many things, there are better ways to do some things. For example, if you want to achieve fast processing times then you might be better off with BigchainDB instead of a blockchain solution.
9. Blockchain has the potential to replace all centralized systems
Although the decentralized approach behind blockchain and crypto igaming makes it somewhat immune to hacking and other cyber threats, it’s not actually immune . That means that an application built on this technology is just as vulnerable as other applications that don’t use blockchain at all (at least for now).