Blockchain technology follows the decentralized model which is creating breakthroughs not only in financial sectors but also in government agencies and private companies. Blockchain is like a digital file which records the data or transaction taking place on the network from sender to receiver end. As the technology is in the nascent stage, many of the concepts are being misinterpreted by the people. In this article let us uncloud the confusions and try to find out the thin line between the reality and myths associated with technology.
Myth Vs Reality | Blockchain Confusion
Let us try to burst some of the myths which are commonly confused with reality associated with the latest technology.
Blockchain = Bitcoin?
Blockchain came into the picture when Blockchain-based cryptocurrency started gaining popularity. Though the concept of Blockchain technology was introduced much before the invention of crypto coins, still both the terms are commonly mixed up. In reality, both the terms are not synonymous, Blockchain allows the peer-to-peer exchange of the digital currencies and maintains the record of distributed ledger throughout the network. On the other hand, Bitcoin is a cryptocurrency which is being exchanged between two people without any intermediary or central authority facilitated by Blockchain technology.
Blockchain Is Meant for Cryptocurrency ONLY!
Is Blockchain only for cryptocurrency? Cryptocurrency is being one of the industries which hyped the significance of Blockchain technology in the digital revolution. Many times it is being interpreted that Blockchain is only meant for cryptocurrency. But, this is obviously not true. The reality is that Blockchain technology has recently seeped through the various sectors like healthcare, automotive, supply chain management, tracking of logistics, and many more. Blockchain without cryptocurrency can exist on its own once the varied sectors started to understand the utility of this technology.
Blockchain = Database Storehouse ONLY!
Blockchain is a storehouse of each transaction taking place between the people associated with that particular network. One must be clear with the fact that maintaining the distributed ledger is one of the functions not the only function of Blockchain technology. It can be used in maintaining the network for the transaction, tracking the movement of the payments or the movement of goods from one place to another, and many more. After integrating with technologies like Artificial Intelligence, Internet of Things, and many more, Blockchain can function differently, thereby have the potential to accelerate the digital revolution.
Blockchains Is Public or Blockchain Is Private?
Some of the people consider that Blockchain is publicly available while others believe that Blockchain is private. Actually, Blockchain can be both public and private, i.e. permissionless and permissioned depending on the team of developers who actually design or own it. Type of Blockchain depends on the purpose for which technology is deployed in the network. For instance, if an online media house deploys Blockchain in their network, it may keep it public for the accessibility of data without any permission. While on the other hand, if the banking system integrates the Blockchain with the system, then it might give access to confidential documents to some of the members associated with the network only (a private network)
Blockchain Is Cloud-Based Technology?
Blockchain technology is based on a consensus mechanism that validates and updates the block for every solution of a complex mathematical problem. Assuring the tamper-proof and highly secured network, Blockchain is a technology-based decentralised platform with different AOI tools. While on the other hand Cloud computing is based on a client-server or centralised model which provides access to the technological components for better integration and operation. Also, Blockchain-based networks or services can be downloaded and worked upon while using other tools and Cloud can be deployed for the storage of data at one commonplace (not physically but digitally!). Blockchain validates the existence of documents while Cloud stores the validated data. Thus, both of them are completely different
Blockchain is the distributed ledger technology that has the true potential to emerge as the solution for various challenges faced by industries. Blockchain can assure the efficient database management, secured and quick transaction while maintaining privacy and anonymity with minimal transaction cost and fees. The future predictions of Blockchain technology tend to incline towards the positive paradigm of digital revolution not only in the sector of finance but also in healthcare, supply chain management, logistics, automotive industry, entertainment sector, and all other newly evolved sectors.
I hope this article helped you in understanding the Blockchain technology in a much crisper way and had unveiled the truths related to it. Bursting the myths won’t only allow you to understand the technology better but also aids you in realizing its real potential.