https://docs.google.com/forms/d/1apzYQHO6Qdt7ng5yUPFO_LG4ABWFBwUl6FSRo25zozY/edit
Myths and Misconceptions of Blockchain
Nowadays one cannot travel far without hearing something about Bitcoin or the blockchain network that it operates on. The growth and dissemination of this new tool has been more rapid than the common knowledge surrounding it can keep up with. Because of that, there are many misconceptions that have materialized around what exactly blockchain is.
There isn’t just one use for blockchain. A broad range of businesses, investors and industries can use the underlying technology of distributed ledgers to their advantage. Since this revolutionary technology shows no signs of slowing down, it is best that we understand it. Here are some common myths about blockchain:
Myth #1: Blockchain is all about cryptocurrency.
Although the first application of blockchain was Bitcoin, that certainly is not
the last use for this powerful technology. Bitcoin reached an unprecedented level of notoriety, and rightfully so — it brought forward a revolutionary change to a previously unchanging currency trade industry. It makes sense that people would confuse this mainstream application with the technology that supports it, however blockchain serves a purpose far beyond Bitcoin and cryptocurrencies.
Blockchain’s purpose is not exclusively in support of “storage of value” or peer-to-peer “transfer of assets”. Significant advances in cryptography and a broader understanding of the power behind a trusted, distributed ledger, as well as the advantages of a reliable decentralized network, have created the necessary ingredients for an infinite number of applications that can vastly improve systems and infrastructure for every industry.
Blockchain is about providing a trusted infrastructure for transactions. Digital-based transactions (for example) can be coded within a legal framework (smart contracts) necessary for secure, streamlined, and scalable execution.
Trending Cryptocurrency Hub Articles:
1. The Bitcoin Bubble Post Mortem
Myth #2: Blockchain is a tool for criminals.
The seemingly anonymous nature of cryptocurrencies (financial application
of blockchain) does have appeal for criminals. It is a fact that Bitcoin has been used to anonymously collect ransoms. Cryptocurrencies have been associated with online drug sales, money laundering, and sex trafficking. While it would appear that criminals can leverage this tool to hide their identities, they can’t avoid revealing other information that can be useful to investigators. Every Bitcoin transaction is recorded on its blockchain, a publicly accessible record of all transactions made. There are highly specialized firms that support investigators by analyzing this data — an option not available for traditional currency.
The very nature of how blockchain works makes it impossible for transactions to be unrecorded or altered. This is what provides the trust element. Within blockchain, data is broadcast to a peer-to-peer network of decentralized computers known as nodes. The data is then validated (using known algorithms). Once the data is verified it is combined with other data to create a new block of data for the shared and distributed ledger — then added to the existing blockchain in a way that is permanent and unalterable. It would take a massive supercomputer to break the cryptography or alter any block of information within a node — and assuming that were possible, all the other nodes (they are independent of each other) would reject this unverifiable update. Therefore, the blockchain is a highly secure and verifiable database of information that is incorruptible. Such a source for truth is hardly a meaningful tool for criminals.
Myth #3: Blockchain is only a Consumer or Peer-to-Peer Proposition
While it is true that the ledger style accounting, secure transactions and smart contracts offered by blockchain technology offer a compelling proposition for many consumers, the benefits do not exist solely for this group. Nowadays, the most commonly discussed topic within the walls of any insider discussion regarding telecom, tech, data centers, or basically anyone who actively works within the IOT stack, is about blockchain and the revolutionary way it is set to change the backbone of the industry. So, how is this possible?
For starters, blockchain-as-a-Service (BaaS) is set to unify enterprises across multiple verticals such as telecom, healthcare, and financial services to name a few. Other solutions, such as Blockchain-as-a-Transport (BaaT) leverage blockchain to create an architecture that can connect geographically dispersed Layer 2 islands over any available infrastructure, allowing it to securely support all kinds of traffic over any IP transport network including the public internet. It doesn’t end there either, as enterprises are well on their way to understanding the importance of blockchain to their respective industries and are now busy answering the question of just how best to incorporate this powerful technology into their businesses.
Myth #4: Blockchain is not secure.
In fact, storing data across the blockchain network eliminates the risk faced in
the typical scenario where data is centrally held and managed at points across the internet. Not only does blockchain, by its very nature, lack these localized vulnerabilities, the encryption technology that it utilizes ensures a highly locked down security protocol.
What we know:
- - Blockchain is a robust technology
- - Blockchain is transparent and incorruptible
- - Blockchain enables the storage and transport of data
Blockchain is a decentralized technology — whatever happens on it is a function of the network as a whole. What this means in practical terms is that certain elements of traditional commerce could become unnecessary. Trades become instantaneous, records become fully public, and working on a decentralized peer-to-peer platform becomes inevitable.
For more information on blockchain technologies and how they are changing the face of established industries such as telecom, visit our website at www.OpenCT.io.
Join the revolution! Upcoming Webinars on Wednesdays and Fridays (all times Eastern):
OpenCryptoTrust for Investors — Wednesdays
5PM: https://zoom.us/webinar/register/WN_jpso6jaAR6mrxp3otY3THg
OpenCryptoTrust for Technophiles — Fridays
Noon: https://zoom.us/webinar/register/WN_OBCQAISfR6eb4mpLGoDr-Q
OpenCryptoTrust
“Bringing telecommunications effortlessly together, anywhere!”
