Elaborating the truth on the common misconception about Blockchain is a way of boosting Newbies’ confidence in the Blockchain world.
Various areas of Business use Blockchain, these include; logistics, Healthcare, the crypto market, etc.
This article is set to disregard the common belief that drives the misconception about blockchain.
Misconception 1: Blockchain is surrounded by too much confidentiality
There is a misconception that Blockchain is always confidential, this is because all cryptocurrencies that Blockchain powers are built with a high level of security and are associated with confidentiality.
The reason that there is top-notch security is that, cryptocurrency deals with the investment of assets and a high level of digital transactions, on this note hackers are always seeking loopholes on how to steal investors’ assets, hence the need for absolute security.
Facts about it: depending on whether it is a private Blockchain or Public Blockchain.
As much as there is a high level of security associated with Blockchain to an extent that does not guarantee its safety.
To explain this; blockchain networks can be Public and private.
In the aspect of public, any user has the right to perform a transaction, they can also see the history of the system.
In the aspect of private Blockchain, the stakeholders need to receive approval from the owner of the Network, in this case, the information on the Blockchain is hidden from the stakeholders.
Misconception 2; Stagnation of Blockchain Technology;
Some people without the basic Knowledge of how blockchain works Believe that, since the network has received so much attention over the years, its resources have reached their peak and are exhausted.
Fact about it; Blockchain Technology is Built to constantly evolve
The profit a company gets is a great pointer to how successful such a company is, having this in mind, it gives a conclusion that blockchain technology is far from stagnation.
This is because of the constant financial growth that the network has gotten over the years.
The basics of Blockchain theories have been in existence for more than 30 years, on that note there is no doubt that more servers and faster internet connections will continue to be the basis on which this network is pushed forward.
Misconception 3; there is limited scalability potential of Blockchain Networks.
Theoretically, blockchain creates a system with transparency that works hitch-free, some people assume that if it is applied properly, that the scalability potential is limitless.
Fact About this; Some Challenged that have not been solved are presented by some factors
One of the many characteristics of a blockchain network that is not known is that transaction on the network is resource intensive.
For Example; rather than the network having the prowess to process thousands of transactions per second, it can merely complete dozens.
This reason is a lack of processing power and inherent design limitations.
Note that, an attempt to expand the Blockchain system without better preparation can result in system failure, as it will expose the network to vulnerability.
Misconception 4; only criminals use Blockchain technology
To some people, the activities in blockchain especially cryptocurrency are used by criminals to perform criminal activities.
They believe that since the people behind the operating system are not well known, that the possibility of it being a scam is high.
Fact About this; less than 0.7% of the activities in Blockchain can be attributed to illegality
A report reveals that 0.62% of the transactions that are carried out in cryptocurrency are illegal. This is because there are always bad eggs looking for immediate gain.
However, Bitcoin and other cryptocurrencies that are leading are tirelessly tracking down these criminals.
Misconception 5; Blockchain Network is a fraud-free system.
One of the big problems affecting major industries today is fraud.
Cryptocurrencies in Blockchain operate with a discreet solution because they can be set up to be transparent in such a way that it will be difficult for cyber criminals to tamper.
Because of this measure to tackle illicit activities, many people believe that the technology has the potential to completely eradicate fraud.
Fact about this; Areas Like the Intervention of human has the potential of introducing fraud in technology.
Although they are mechanisms built to authenticate and verify users, aiming to give a transparent ecosystem, there are many other areas that could lead to crime.
One of those areas is the trust issues between humans.
It should be noted that blockchain technology does not have the capacity to eradicate human zeal to involve in fraudulent act, as such, it is very important that all transaction that is carried out using the technology be verified.
The emergence of blockchain has brought about so many digital possibilities, however, like any other technology, there are misconceptions about it.
Blockchain is totally scalable, hence it does not guarantee the absolute elimination of fraudulent activities. The good thing is that a high level of transparency can be set up for users that are involved in the operation of the technology.