05 MOST COMMON MISCONCEPTIONS ABOUT BLOCKCHAIN SPACE!
Understand what blockchain exactly is and gain insights on what are the common misconceptions about blockchain prevailing in the crypto space right now.
The word Blockchain has been with us for a long time now and has introduced us to various other features and possible technological evolution. Howsoever, this one-in-a-kind technology has turned a lot of brains with various unexpected misconceptions that do not stand true to the facts that we have learnt so far.
It’s time to debunk those widespread misconceptions and get in depths of the actual logic behind them.
But before we do so, let’s clear the blurry wind of definition and see what blockchain exactly is?
WHAT IS BLOCKCHAIN?
A blockchain is a distributed database that is used to store records of all transactions that have taken place across a peer-to-peer network. This database is made up of individual blocks, each of which contains a cryptographic hash of the previous block, a timestamp, and transaction data.
Since blockchain technology first emerged in 2008 with the launch of Bitcoin, it has been spelled as a revolutionary way of storing and verifying data. However, blockchain is not just limited to financial transactions; it can be used for any type of data that needs to be securely stored and verified.
Now that we have learnt what blockchain exactly is, let’s explore the widespread misconceptions about blockchain prevailing in the crypto space right now:
TOP 05 MISCONCEPTIONS OF BLOCKCHAIN SPACE:
(01) Blockchain is only used for crypto concerns:
A lot of people seem to think that blockchain is only used for cryptocurrency. A big No!
While cryptocurrency is the most popular use case for blockchain, it is not the only one. Blockchain can be used for a wide variety of applications. The list of potential applications for blockchain is practically endless.
Some popular examples where we have recently seen blockchain become a good use includes:
-Asset management:
Asset management is one of the most promising applications of blockchain. By using blockchain, asset managers can keep track of their portfolios in a more secure and transparent way. Additionally, blockchain can help reduce fraudulent activities, such as insider trading.
-Digital identity:
Digital identity is another area where blockchain can have a major impact. Currently, our identities are stored in central databases, which are vulnerable to hacks and data breaches. With blockchain, our identities could be stored on a distributed ledger, making them much more secure.
-Smart contracts:
Smart contracts are another potential application of blockchain. A smart contract is a contract that is stored on a blockchain and can be automatically executed when certain conditions are met. This could potentially eliminate the need for intermediaries, such as lawyers, in a wide variety of transactions.
-Voting:
Finally, blockchain can also be used for voting. By using blockchain, one can create a voting system that is more secure and transparent. Additionally, blockchain could potentially help reduce voter fraud.
(02) Crypto is volatile so is blockchain:
No, that’s not right. As a result of this misconception, people have a hard time trusting blockchain technology. It is true that the term blockchain is very closely associated with crypto, but it has nothing to do with it in its entirety as a whole. Blockchain technology is a different form of technology that supports crypto and can also be used in many other ways.
Even if crypto collapses, the technology behind it, i.e., blockchain technology, will remain stable even in the long run. Despite the volatile nature of crypto, blockchain technology remains very stable and continues to function in the same way it was designed to function when it was first developed.
(03) Blockchain is used by criminals:
So, who started it, and what is the sole proof? The fact that only a few bad reports have been highlighted does not imply that the whole sector is corrupt. It’s not only blockchain technology; hackers use a variety of different technologies to commit cybercrime on a regular basis.
This is a very inaccurately adopted idea about blockchain; there will always be a minority of people who would embrace technology in an unlawful manner, but the majority is still available that wants to make the best possible use of such technology for something greater.
Blockchain technology has been recognized as one of the legitimate methods of conducting business without the necessity for a central authority.
(04) You Need an Advanced Degree to Work with Blockchain Space:
The fact is you really do not need an Evolved Capacity to Work with Blockchain technology. An advanced degree is not a requirement to work with blockchain technology. In fact, blockchain technology is designed to be accessible and user-friendly.
There are various tools and software available online that can assist you in understanding the technology and getting started with it.
This is good news for those who are looking to enter the world of blockchain technology, as it means that you do not need to have a background in computer science or engineering to be able to work with it. There are a number of ways to get started with blockchain technology, and many resources available to help you learn the basics.
(05) Cryptocurrency can be easily hacked and so does blockchain:
While it is not true that cryptocurrencies can be hacked, it is important to remember that if private keys linked with your wallet are compromised to a third party, one can face the hacking but other than that it is impossible. There are many different ways to store and protect your coins, and as long as you are careful with your private keys, your funds should be safe and blockchain technology has nothing to do with it particularly. Blockchain is impossible to hack as it is not linked with any other third-party module.
BIDING THOUGHTS!
In the little more than 10 years since its inception, blockchain technology has grown substantially in popularity. The promise of blockchain is apparent, but the technology is far from perfect, and misunderstandings make things worse.
As you remove all of the myths about blockchain, you get closer to a genuine grasp of its qualities. You’ll even learn about its flaws, which will help you understand it better.
Keep the following CITRUS to stay updated on web 3-related trends and gain useful insights from the crypto world.
