Although blockchain has become the hard-hitting buzz in the crypto market, people are still unaware of its potential and practical implications of blockchain. As people are now more aware of all dynamics and intricacies of the currently ongoing new-age technology but still they don’t believe it properly. Blockchain is a distribution ledger property in its crude form which is issued to collect data in the data blocks about all types of transactions occurring on the network. Further, these blocks are linked with the hash function cryptographically. Start your trading journey by investing in a trusted trading platform such as Quple AI.
This technology prevents unauthorized manipulation of the data stored in the database of blockchains and thus makes it a strong and sustainable database of blockchains. As every coin has its two sides similarly blockchain is also involved with some myths as exploded below.
Myth 01- The best way to change or transform anything and everything
Blockchain represents the new big data or AI as well. These are famous with the name of blockchain tourists. As per the statement of CEO Brad Garlinghouse they concluded that although blockchain is a powerful code. In case blockchain is the best way to bring innovation to your business with your legacy system, it can capitalize on the power of decentralization. This decides whether blockchain can increase consumer consumption or is it helpful for cost savings as well. So while evaluating or analyzing all the aspects effectively and seeing if the implementation of the blockchain is worthwhile to not.
Myth 02- The only storage mechanism of Blockchain
In actuality, as per its design and nature, blockchain is a distributed database. But as per the assumptions of the people, they consider her as a sophisticated storage mechanism. So let’s over this confusion. It is one of the additional benefits which arrived when it is used as an example of the exchange application. It can’t store the comprehensive data of your but it is useful to store the detailed history of the transactions that occurred on the network.
Myth 03- Is it possible that Tokens and Coins both are the same things
The concept to initiate coin offerings and tokens started with blockchain technology and is not synonymous. Coins are considered as a single utility and also act like digital money which allows users to sell or purchase things. They can be easily transferred or kind other than performing any other functions except serving for the sale or purchase of cryptocurrency through the medium of exchange. Whereas tokens are digital assets that can perform more than one function. They can perform as coins and also represent utility or an asset.
Myth 04- Blockchain is Also as Bitcoin
Blockchain became more famous after the recognition of Bitcoin around the world. But are blockchain and bitcoins both the same? Well, the answer is no. They are interconnected to each other but do not perform equally. The one who has done a lot of trading and analysis on the technology can explain to you that both are different. The applications available in the real world as well as the digital world are significantly affecting the digital industries, finance, logistics, and healthcare as well. Bitcoin is the only cryptocurrency that is designed to facilitate transactions.
Myth 05- Blockchain Can be Scaled Infinitely
Another misconception about Blockchain is concerned with the scaling ability. Blockchain is positioned in the growing list of records and represents that scalability of the blockchain is possible to an infinite extent. Moreover, scaling blockchain is not possible. As the blockchain cannot exceed its number of transactions even of a single node that is taking part in the network. Moreover, with every new addition of the node, the phenomena of inter-nodes of blockchain take place and result in why blockchain is not possible to scale.
So these were the myths about blockchain technology that are helpful to add more clarity and justification to your knowledge base. A fintech company dedicated a venture and designed smart contracts for ICO launch which is helpful to identify the possibilities of blockchain disruption and further implement them in your business model. Therefore to discuss the idea, a consultation with the blockchain expert should be done.