Top-3 myths about blockchain technology explained
Anyone who follows Web3 is aware of the rapid evolution of blockchain technology and its related tools, allowing it to decentralize business processes. However, the use of blockchain technology in many startups and the constant emergence of new frameworks and architectural solutions may raise questions about the necessity of its use not only among newcomers but also among eminent experts. Therefore, I suggest breaking the top-3 stereotypes about blockchain technology, that prevent some from enjoying the Web3 world and taking full advantage of decentralization.
Stereotype 1:
Blockchain is an unnecessary technology scammers use to attract large investments for knowingly unrealizable projects.
Truth:
Blockchain technology is a tool that makes it possible to remove the middleman from the business process and entrust the management of that process to a decentralized protocol that operates according to strictly established rules. In some cases (but not all), eliminating this middleman brings a number of benefits and opportunities to the system that was unattainable before blockchain was invented.
Our DEIP protocol is designed to deliver an unbiased quality assessment of intangible assets (without the involvement of a centralized agency), to provide advanced ways to manage these assets through a customizable Decentralized Autonomous Organization (DAO) model, and to record the ownership of assets in a distributed registry, without the ability for third parties to seize those rights.
Stereotype 2:
Blockchain is a complex technology that requires deep knowledge of low-level system APIs, cryptography, and the ins and outs of synchronization and messaging in distributed p2p networks.
Truth:
A few years ago, to implement a unique project using blockchain technology, you needed to either develop it from scratch or make a fork from an already available open-source technology and then redesign it to bring it to spec. Both of these methods require serious experience and knowledge in distributed systems design, cryptography, low-level I/O, and other skills.
Today, there are already frameworks that implement all the low-level logic for you and provide the ability to create domain-specific blockchain protocols. These frameworks implement most of the infrastructure logic for you, allowing you to focus on the specific business logic of the protocol. In our opinion, the best framework by far is Substrate, which we use to develop our technology.
Stereotype 3:
The top management of blockchain projects does not know what they want from the development team, as they do not understand what blockchain is and use it only to attract attention from investors and crypto communities.
Truth:
DEIP was founded in 2017. It was the peak year of the ICO Boom when almost any project positioning itself as a blockchain could attract hundreds of millions of dollars with proper marketing and promotion in the masses, regardless of its real value for users. We realized that such an ICO boom would be inevitable with the initial popularization of blockchain technology on the background of such behemoths as Bitcoin and Ethereum.
Understanding the real value and usefulness of blockchain technology, as well as the challenges our product can address with this technology, we made a strategic decision to focus on the design, development and study of the target subject area. We postponed public announcements to avoid the negative wave of distrust which drove a cloud over projects in the blockchain industry. DEIP has been around for almost 5 years, and we clearly speak about our goals and vision.
The moral of the story
The stereotypes described above indicate a lack of understanding of the purposes of blockchain and, as a consequence, its use in processes where it is unnecessary. Usually, the introduction of blockchain technology contributes to the complexity and cost of development, and the emergence of many limitations and problems in support. Therefore, if you have the opportunity to solve a given problem without using a decentralized registry, and this solution is acceptable, never use blockchain, and opt for more familiar technologies.
