Here’s the truth behind the 6 biggest rumors or misunderstanding about how blockchain actually works.
If you meet someone savvy enough to understand the basics of blockchain technology, they’ll tell you it’s the future. There’s no question that blockchain’s future is promising, but it’s still something the vast majority of people don’t understand. They may not pay close attention to the tech industry or assume it’s too complex to understand.
On the other hand, some people will tell you they’re knowledgeable about blockchain technology, but then make assumptions based on their limited research. Or, they simply have a fundamental misunderstanding about the true capabilities of blockchain. Blockchain could be common knowledge someday. For now, too many lies are being spread about how blockchain actually works.
Here are 6 of those lies and misunderstandings explained in enough detail to give you a better understanding about blockchain’s future in the tech world.
Blockchain Security is 100% Safe and Unbreakable
Many people compare blockchain’s security to an immovable object, but it doesn’t take an unstoppable force to break through its complex math and unique software rules. Yes, blockchains are extremely safe. However, it’s still possible for malicious attackers to find a way in. It’s just very difficult and can be extremely expensive.
In a nutshell, the trustworthiness of any particular blockchain depends on the people who have access to it like any other system. Complex or not, the technology’s security has a reputation of being “unbreakable” because each system has their own cryptographic fingerprint unique to every single block and a “consensus protocol,” which is the process that nodes in the network agree on their shared history.
It’s true that your personal information and data can be stolen, but it’s an extremely challenging process to do so. Only an elite number of people can access that information, and the truth is most attackers don’t put in enough effort to break through. The silver lining is that blockchain security is only going to become even more sophisticated as the technology continues to develop over the coming decades.
There Are No Errors in Blockchain
Since a lot of misinformed people believe blockchain to have the perfect security system, it makes sense for people would assume its code is the reason why the system is perfect. The simple truth is that blockchains are created by cryptographers and programmers just like any other coded program in the world.
As technically sound and talented as many professionals are, they’re not beyond making human errors. Coding is full of a number of mistakes, bugs, and other issues that can sometimes be chaotic. Artificial intelligence is advancing at an astonishing rate, but as long as humans are still crafting blockchain tech’s code, there are going to be some errors just like everything else and the Earth continues to spin.
Blockchains Are 100% Free of Charge
Another assumption people make about blockchains center around their price. Apparently, enough people believe the technology is totally free that a lot of people expect it to be once they get involved in the market. Simply put, blockchains require a ton of energy to run effectively. That power comes from a plethora of computers at once.
Blockchain is technically a decentralized ledger, so its power needs to come from several sources. Mining is actually the process of validating new transactions and recording the data onto the blockchain itself. That process requires a massive amount of energy from thousands of computers at once. Logically speaking, does it cost money to power computers with electricity and maintenance?
The cost of blockchains, when compared to other systems, aren’t expensive, which is where the reputation of being “free” comes from, but the technology is still very much dependent on money. It’s highly unlikely that’s ever going to change no matter how advanced the tech becomes.
Blockchain’s True Purpose is For Payments
Blockchain technology is still an extremely new concept to the world. With so many people unaware of it or misunderstanding any of these six assumptions, the vast majority of the public tends to use blockchains for payment transactions. However, developers have already started using the technology to accomplish other tasks.
For instance, we’ve covered how blockchains are revolutionizing the food supply industry and also being utilized to advance messaging applications. Elsewhere, both Amazon and IBM have already begun using blockchain tech in business, but all of this is only the beginning. As the technology continues to evolve, the uses for blockchains will also become far more vast and complex.
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