Myths regarding Blockchain
Myths regarding Blockchain

Ever heard of Blockchain? No, I will tell you what is Blockchain? In very simple terms it is a decentralized form of a ledger in which transactions are recorded. It is accessible to the peer – to -peer network, which has information of all the transactions. Blockchain is not controlled by any sort of authority i.e. no one is controlling it. It is a database which maintains continuously growing set of data record day by day. No one is controlling it or It is not controlled by any master computer.

Myths regarding Blockchain

Nowadays Blockchain is one of the top technology but there is some myths regarding this. It is most important to clear myths in front of you guys. Various myths regarding Blockchain are discussed below:

.There is only one Blockchain and it is public

It is wrong. There are lots of Blockchain. Blockchains are of three types: Public Blockchains, Private Blockchains and Hybrid Blockchains. Public Blockchains are generally open source, anyone can join the network. They are transparent. With this network anyone can see the details of transaction i.e. amount and hash. Private Blockchains are those in which you have to take permission to join the network. These are centralized. Hybrid Blockchains have privacy and security of the private Blockchains and transparency of public Blockchains.

.Blockchain is bitcoin

It is a misconception. Bitcoin is a CryptoCurrency while Blockchain is a decentralized ledger in which all the transactions are recorded and accessible for a peer-to-peer network.

.Blockchain can only be used in monetary sector

Absolutely incorrect, though the first usage is in the finance sector but there is no hard  and fast rule about it. It can be used in other sectors like in the food industry, export, healthcare sector, etc. even Walmart has used hyper ledger Blockchain of IBM to assess the quality of food products. It can be used in recording keeping, ownership, voting, and intellectual property.

.Private information is visible to everyone in Blockchain network

This is also not true. Only transactional information that is currency is mined of a particular value is visible with a hash. Rest is encrypted with a private key, which is only visible to the person having key.

.Blockchain cannot be hacked

Anything can be hacked. Don’t live with the myth that Blockchains are completely secure. As per MIT technological review, in Feb coin base’s security team noticed something fishy going on in Ethereum Classic. It was an attacker who somehow got control of more than half of the network’s computing power and was using it to write the transaction history. The attacker was spotted pulling $1.1 million dollar, coin base claimed no money was stolen. While another exchange said it lost $2, 00,000 to the hacker. So we can say that Blockchain can also be hacked.

.Blockchain is free of cost

Not true. Blockchains require many computers for creation of distributed ledger; lot of power in the form of electricity is being used. No doubt you are not paying for that but somebody is bearing the cost to operate Blockchain.

Ways to deal with myths

The only way to deal with myths is information. Proper knowledge of a subject will never breed myths. We must make people aware of the basics of Blockchains, its working, its features, its types as well as pros and cons.

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