MISCONCEPTIONS EXPLAINED
Common Blockchain Misconceptions Explained
Blockchain has been touted as a game-changing technology whose potential is only just being realised. At its core, it’s a secure and decentralised technology that makes the transfer of information transparent and immutable. From government agencies to private businesses, its use cases vary.
However, like any new technology, misconceptions abound about its use and adoption, including some of the following.
It’s the Same as Cryptocurrency
While blockchain is often confused with cryptocurrencies such as Bitcoin, the truth is that Bitcoin (and other similar cryptocurrencies) are built upon blockchain technology. On its own, blockchain has many more use cases that extend beyond digital currency.
It’s a Cloud-based Database
The only similarity between blockchain and cloudbased databases is that both store data. It’s important to note that cloudbased databases tend to be controlled by a single entity, whereas blockchain is distributed across a network, meaning data is stored across multiple computers.
It’s Free
Blockchain technology is indeed opensource and therefore available freely. However, running a blockchain network requires resources, including both hardware and software. While some of blockchain’s use cases can help reduce costs, they’re not always free.
While blockchain is often confused with cryptocurrencies such as Bitcoin, the truth is that Bitcoin (and other similar cryptocurrencies) are built upon blockchain technology. On its own, blockchain has many more use cases that extend beyond digital currency.
To learn more about this topic, visit the blog of Volker Hartzsch.
