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Blockchain and cryptocurrency are the hottest terms on the Internet for some time. Blockchain was the technology industry's speech this year and is definitely the next disruptive aspect of technology. It is a mechanism that allows participants to make sure they are looking at the exact information.
Already thousands of projects have taken the first steps in the implementation of the blockchain. In addition, industry analysts are discovering new ways in which the blockchain redesigns online security. But it is in the nascent phase and is changing rapidly. And many people involved in this space do not understand this technology very well. As a result, there are several misconceptions related to the blockchain.
So, we are here to clarify seven common myths that evolve in relation to this technology.
# 1 There is only one blockchain
A common misunderstanding is that people think there is only one blockchain. On the contrary, there are different forms of the blockchain. There are open source and closed source blockchain technologies. And, not all blockchains are absolutely safe and can easily be tampered with. Some projects have their own blockchain because it is easy to create one, but the difficult task is to get a lot of adoption. Many projects use existing blockchain technologies as they have strong adoption.
# 2 Blockchain can not be hacked
There are claims that Bitcoin, a blockchain protocol has never been violated since it was launched in 2009. As the blockchain is said to bring transparency, people believe it is invulnerable to attack. However, one must know that no database or system can be completely secure, as well as blockchain technology.
# 3 Only a few people can control it
Cryptocurrency mining is a process in which transactions of different forms are verified and added to the digital blockchain ledger. Because it is a highly competitive space, several people gather in the mining pools to earn a steady income and reduce financial risks. People assume that only one person can use it for malicious purposes. But in reality, a group is made up of many people who can change their alignment at any time.
# 4 Everyone can access everything
When you feel that blockchain is a shared database, they believe that everyone can put something and remove what they want. In the end, it is believed that the same can be used for bad activities. In a blockchain, the data once stored is permanent, so you have to think well because they memorize it. Everyone will have their own databases and not everyone will have access to it. If someone wants to do things that do not adhere to the rules agreed by the other participants, then the rest of the network will not want to work with you. And, they can easily detect changes made to the database.
# 5 There is no privacy
Because transactions are recorded permanently and any changes made to the database are visible to other members of the network, this does not mean that everyone can know what your activities are. There are blockchains with built-in mechanisms that make it difficult for others to know who did what. And cryptographic techniques have made this more difficult. But the downside is that these techniques are complex and consume a lot of storage space, which in turn reduces the number of transactions added to a Blockchain.
# 6 It is easy to create a blockchain from a cryptocurrency
Firstly, it is important to know the two terms. A cryptocurrency is a method of transferring the ownership of money between two parties without intermediaries. On the other hand, a blockchain is a component, which makes it possible. It is a data structure that records the order in which the transfer of ownership occurred. People think they can do more with a blockchain. Although this may be true, the system undergoes a major transformation when the cryptocurrency is removed from the image.
# 7 Blockchains wastes energy
Many people think that blockchain wastes energy. The mining process, which adds the blocking of a transaction to an open blockchain, requires energy. The amount of energy depends on the level of competition to be next to add a block. In open blockchains, this amount of energy is transparent, so it paves the way for criticism of how damaging the system can be. It is possible that in the future there will be better options as the work is under way. The development of infrastructure technology takes a long time and therefore better alternatives could emerge. You can learn more about the energy discussion from here.
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Image credits: photo by Zapp2Photo
