The term “blockchain” has made its way into mainstream media, daily conversations, and is a term that registers, on some level, by a large part of the population. However, it’s still a technology that is foreign to many and shrouded in mystery.
For this reason, there are many myths, rumours, and straight up lies about blockchain technology, what it can and can’t do, and what its future is. Are you buying into these 5 blockchain myths?
Myth 1: Blockchain is a solution for all the world’s problems.
It isn’t. But it CAN solve real-world issues such as verifying digital identities and authorizing digital assets.
The inherent characteristics of blockchain (security, accountability, and immutability) enable trusted and transparent social interactions and offer a solution to bring trust back to social networks.
For gamers, blockchain makes it possible to verify digital assets through non-fungible tokens and have asset interoperability across games. Gamers can trade virtual goods built on a blockchain based platform by using cryptocurrency to settle and process transactions.
Myth 2: Blockchains are slow and inefficient.
There can be limitations in the early stages (as with any emerging technology). But — all blockchains are not created equal.
For a standard blockchain, all computers need to agree to validate a block.
For the original consensus algorithm, various computers compete to solve a mathematical problem, using a model known as mining to complete transactions on the network and get rewarded. This model can be effective but it’s slow and energy inefficient.
Another option is called Delegated Proof of Stake where computers don’t compete. Instead, network users vote for the computers (which we call Witnesses, who act as block producers) who they think are best qualified to run the network. This is the method used on the Peerplays blockchain.
Myth 3: Blockchain is confusing and complicated.
At its core, blockchain is a simple concept: A public digital ledger that records in a publicly verifiable and cryptographically secure manner all transactions within a given network.
A record-keeping system of transactions documented in blocks managed by peer-to-peer networks helps make blockchain transparent.
There are tons of resources available to learn more about blockchain and Peerplays is a very open community :)
Myth 4: Blockchain isn’t ready for common adoption.
Blockchain can open up new opportunities for everyone (though they will not be replacing governments any time soon).
It has already had an impact on financial services, which has presented a strong case for a decentralized platform. Building more on-chain financial products will open up new opportunities for financial institutions that can use a specific platform to keep track of transactions without the need for a central database or management system.
Myth 5: Blockchain isn’t ready for business adoption.
It’s about finding the right fit.
Before adopting a blockchain in your business, it’s important to determine your objectives. You should also make sure that the blockchain has the ability to evolve as your business does. Protect your business from vulnerabilities by making sure smart contracts are upgradeable, and prioritize speed in their execution.
