Every new technology and innovation comes with a lot of myths and misconceptions. Similarly, Blockchain (a new distributed ledger technology platform) has also raised a lot of myths and doubts. These misconceptions are emerging because, blockchain is still at its infancy and not matured completely. Its implementations are also limited and not yet reached the mass audience. So, people do not have transparency and clarity.
In this article, we will try to explore the biggest myths about blockchain and try to justify, if the myth is true or not. Following are some of the myths, we are going to analyze.
Blockchain is only used for cryptocurrency (Bitcoin): This is the biggest myth, where people believe that blockchain and bitcoin are same. So, blockchain is only used in cryptocurrency trading.
Blockchain data is distributed, hence not safe and secure: The basic idea about blockchain technology is that it is a distributed ledger. So your data is also distributed which can be accessed by other parties. As a result, it is not safe and secure.
Blockchain is not actually decentralized: The other misconception is that, blockchain is actually a centralized database. So, the data is not distributed, but stored in a central database.
Blockchain is a very complex system: Blockchain technology is a very complex system which requires a huge infrastructure. This myth is really fearful.
Blockchain platform consumes lot of energy: There is a misconception that, blockchain algorithm consumes lot of energy, hence it is not environment friendly.
Blockchain is over-hyped, so the projects will fail: Some people believes that blockchain technology is another hype without any solid foundation. So, most of the blockchain initiatives will fail in near future.
In this short article, we have tried to explore some of the blockchain myths. There are other misconceptions also, which we will explore in some other article. This article will give you clear idea about the common myths discussed in the tech industry.