It’s a common misconception to think that blockchain and cryptocurrencies are the same thing. They are interconnected, but there’s a big difference between them. Blockchain is a technology; cryptocurrencies, digital money. Blockchain is used to create altcoins. Cryptos are just one of the ways in which blockchain technology can be used.
An advanced technology, blockchain has a bright future ahead of it and many real-life applications, although there are plenty of myths that surround it. Let’s dispel them!
This myth brings us right back to our intro. Blockchain is the underlying technology of Bitcoin, but not Bitcoin itself.
Some people think of blockchain as a single global platform, which is completely wrong. In our previous article about blockchain, we explained blockchain tech in plain English. This technology consists of chain blocks. Each block is a record of transactions of specific data, which can be pretty much anything. Basically, blockchain is a database which can be easily developed, provided you have the right skill set. It can be big or small, public or private – everything depends on your needs.
That’s the most popular myth. When it comes to technology, nothing is 100% secure, although it may appear to be. No matter how tricky, there are always ways to bypass security protocols. However, one thing is certain – blockchain records everything, so no hacker attempt would go unnoticed.
The main principle of blockchain is its accessibility for everyone. The information recorded in a blockchain is available publicly. However, a blockchain can be made private. Moreover, a private blockchain can be built on top of a public blockchain.
It is widely believed that blockchain technology is free. The truth is, that’s not only a false statement, but blockchain technology is pretty pricey to run. A blockchain involves running multiple computers that solve algorithms, and each block in the chain needs computing power to run.
Seriously? Blockchain is widely associated with the financial sector because of its original application in this area. This has long since changed. Blockchain technology has started to find applications in real estate, healthcare, IoT, gaming and many other areas.
This must be the worst blockchain fad myth of them all. There are plenty of applications for blockchain in almost any area. Blockchain technology allows people to store big amounts of data safely, and cheaper than any other system.
Does this mean that you can also use blockchain for your business, big or small? A definite yes! Let’s have a look at real-life blockchain applications…Payments
don’t seem to be an issue for any business today. There are banks, online money transfer services… but what’s the advantage of payments on a blockchain? It all lies in the fees. Transferring funds on a blockchain is much cheaper. Cheap blockchain money transfers can revolutionize any business!
Smart contracts have been developed to allow the transfer of anything of value without third parties needing to be involved. Smart contracts deployed on a blockchain are immutable, which means that they can’t be modified once created.
We’ve mentioned this before, but blockchain allows you to store more data using less hardware. It has become possible thanks to the cloud distribution of data. If you can store the same amount of data using less hardware, it also means you save more.
The format of blockchain design makes everything traceable, which is especially helpful if a problem occurs. Any issue can be easily traced and corrected!
With the development of blockchain, transactions can now be initiated and completed much faster. Please consider this: the newer the blockchain, the faster the transfers.
By the way, did you know that Bitcoin has the slowest transaction processing speed? If you didn’t, we recommend checking out this article to learn more.
Blockchain is a technological leap of faith into the future, and not a fad. It has many advantages for businesses of all shapes and sizes, even at the most basic levels. There’s no chance of it fading away now that it has caused so much stir in recent years.
If you need help with understanding how blockchain technology works, you may be interested in our article entitled Blockchain: Explained in Plain English, which will tell you what is blockchain and how does blockchain work. There’s much more to our blog than meets the eye, so be sure to explore it. Happy reading!
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‘Till next week!
The CoinMetro Team