Common Blockchain Misconceptions Explained

Common Blockchain

MISCONCEPTIONS EXPLAINED

Volker Hartzsch

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.

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Volker Hartzsch

However, like any new technology, mis­ conceptions 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 cloud-based databases is that both store data. It’s important to note that cloud-based databases tend to be controlled by a single entity, whereas blockchain is distributed across a network, meaning data is stored

“

across multiple computers.

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.

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It’s Free Blockchain technology is indeed open-source 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.

To learn more about this topic, visit the blog of Volker Hartzsch.