It’s no secret that technology is already disrupting the conventional ways of doing business. However, many myths surrounding and have not only brought confusion but also derailed its by the masses.
In this post, we will debunk some of the common myths. Let’s delve and explore:
1. Blockchain is bitcoin
Since ’s popularity overshadows ’s, many people tend to confuse between the two. Some people even believe they are the same, which is not the case. can exist without .
is the technology that allows peer-to-peer transactions to be recorded on a distributed across the network. It is a public transaction of .
() is a , which can be exchanged directly between two people without involving any third party (a bank). Bitcoins are created on a and stored in a virtual .
2. Blockchain is just for cryptocurrencies
While it’s true that and may go together like bread and butter, this is not the only use case for . This technology can be used to revolutionize other sectors besides the financial sector.
For instance, in the health sector medical records can be securely stored and shared across medical personnel regardless of where they are in the world.
can also be used to eliminate election fraud by offering transparency in the election process without compromising voters’ privacy.
The sector can utilize to track down the whole process of delivery from its source. Suffice to say many industries can utilize ’s revolutionary capabilities to enhance productivity.
3. Digital Tokens are Digital Coins
and coins are often mistaken as the same, and the two terms are also often used interchangeably by most people. However, the two concepts are entirely different from each other.
Digital coins have only one utility. They act as a of value much like fiat currency. They are used for monetary exchange or as a payment method for services on the . A good example here includes () and ’s Ether (ETH). Digital coins have their own .
On the other hand, complex levels of value such as property, income and utility. Simply put, they represent ownership a particular asset such as company stock. are hosted on secondary blockchains like . They are usually issued through an Initial Coin Offering (ICO).
4. There is one type of Blockchain
There is more than just one type of . They are mainly three types;
Public : here anyone can read and write the . Anyone can audit and review anything at any time on the .
Private : here there is an in charge who regulates everything in the . Therefore it is not free for anyone and everyone.
Consortium or federate : here you have more than one in charge. A group of people or companies (consortium or federate) come together to make decisions that best suit and benefit the network.
5. Cryptocurrencies are for criminals
’s decentralization and anonymity features are quite attractive to criminals. In the past, criminals have taken advantage of them to execute illegal activities, but the crypto sphere is slowly entering the regulatory world.
Many legitimate organizations now accept as a form of payment. Some governments and large financial institutions are also on the verge of implementing technology.
Countries like the US, for example, recognize as a commodity. Germany and are already using as a financial instrument. Dubai is also in action towards being the first government running on by the year 2020. As you can see, are legit, and they are getting even more mainstream traction than ever before.
Final word
The early mysterious and misconceptions that surrounded and led to the churning of several myths that have been mistaken for the truth. Dispelling such myths will go a long way in helping digital assets become mainstream. We hope this myth-busting blog post helps you have a better understanding.
Over to you. What are the other myths surrounding and ? Share your views in the comment section below.
Published at Thu, 07 Mar 2019 10:19:44 +0000
