Blockchain Technology has been in the center of attention for
Blockchain Technology has been in the center of attention for over a decade now, however even today when the technology is being pegged as the driving factor for the next industrial revolution, there are many misconceptions associated with it.
Those who understand or invested in it at an early stage believe it to be the solution of everything or a magic wand which can rid us of all the problems. However, there are quite a few who are on the other side of the spectrum and believe its just a fan frantic which won’t last the next decade.
People have opinions and a difference of opinion could be a good thing for the refinement of technology and make it more efficient in the long run. However after listening to various arguments from both sides, it seems apart from the difference in opinions, there are various misconceptions associated with the technology as well. This article would help you understand those myths and the actual reality behind it. So, let us bust some Blockchain myths together.
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Blockchain Technology is the Solution To Everything
Many crypto and blockchain enthusiast peg the technology as the crusader of change and solution to every major problem. However, that’s not the case, Yes the technology works on the principle of the distributed ledger and most of the industries which are suffering due to the centralization of power can implement the technology for their good. However, there are things which cannot be solved by Blockchain.
The blockchain believers need to understand that the technology is just an aid and not the complete solution. Different blockchain platforms have their own set of issues and drawbacks and since the technology is fairly new, it would need more refinement in the long run before mass adoption.
Saying, Blockchain is the solution to everything is like telling the banks that a single distributed spreadsheet can manage all the problems in the banking sector. The implementation of technology in the right way is the key.
Imagine Blockchain Technology as the language used for the development of games, one can create a successful game like Fortnite or Pubg by putting in the required time and resource. However, the same language and platform are also used for making below average games by those who do not have the resources to develop a top quality intriguing gameplay.
Here it is necessary to observe that the computer language and the platform are available for everyone to use, but how one uses it depends on that particular person or community. We cannot blame the computer language or the technology if the developed project turns out to be a disaster.
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Blockchain Data Distribution Can Put our Privacy At Risk
Blockchain Technology promises to end our worries about the mismanagement of our data over the internet, by putting it on a distributed ledger. However, that might sound bizarre to those who are not aware of the working of the technology. The obvious question is, how can you secure my data putting it on the internet?
The answer is cryptography, the technology used in cryptocurrencies. By locking your data with an encrypted digital signature, you have the full authority to make sure who can view or use your data. Cryptocurrencies are digital currencies or a bunch of data with encryption which make sure that the digital currency only belongs to those who have the private key to that amount of digital asset.
In the current scenario, your data is easily manipulated with or without your consent by using a simple cookie, however, when you put it on a blockchain, you can decide who has the access to it and for how long do they have the access. Not only that you can receive different services or monetary returns for sharing your data.
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Cryptocurrencies and Ponzi ICOs are Undermining the Importance of Blockchain
Yes, it is true that the cryptocurrencies which are one of the use cases of Blockchain have been the center of attention for almost a decade since the Bitcoin White Paper came into existence. The ever-increasing scams and Ponzi schemes run by the scammers are indeed making it difficult for the regulatory bodies around the globe to allow for the mass-adoption of the digital currency.
However, people need to realize that it’s not the technology which is at fault but the people around it. The Ponzi schemes run in the name of cryptocurrencies would also be run in any other sector. Bank heists by robbers do not put banks at fault, right?
So, in order to make the technology completely risk free, the people behind and around it need to be more educated against such scams and Ponzi schemes rather than shutting down the technology.
Private Blockchains are just Shared Database
People who do not understand the distributed ledger technology can be forgiven for thinking that way, however, the distributed ledger technology usage, be it in the private blockchain or public blockchain has a completely different way of functioning.
A distributed database can be accessed by those who have the permission, and same is true for the private blockchain, however, the datasheet still has the centralization of power, where only a few at the top are allowed to make permanent changes. Apart from that, the cost of maintaining a distributed spreadsheet requires expensive data reconciliation. Ask a Bank how difficult it is to maintain a shared data sheet.
A private blockchain has all the functionalities of a public blockchain, but with a smaller network. Public Blockchain allows a user from any part of the world to make changes into the node, while in a private blockchain the changes can be made by all authorized members. You can view it as an advanced version of shared data sheet plus the aid of the technology for the data reconciliation.
Final Thoughts
Blockchain Technology of the Distributed ledger or shared power has come a long way within a decade of coming to the forefront. However, the hue and cry around the cryptocurrencies and the trade market have lessened on its importance by a bit.
Having said that, people including the traditional bankers who are seen as the resistance force against the mass adoption are paying attention to the implementation of blockchain technology. Majority of governments around the world have dedicated research facilities looking into various Pros and Cons of the technology and how it can be implemented without disrupting human life.
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