The three most common myths about Blockchain


Despite the triumphal march of technology, many leaders and leaders are still in an enigma to adopt it

26, 2018

4 minutes of reading

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In J.K.Rowling & # 39; s Harry Potter series, the magical world considers it dangerous to pronounce the name of You Know Who. As the story unfolds, readers learn that Lord Voldemort was a brilliant young wizard before he became bad. Unwillingly leaves a part of him to reside in Harry Potter, who ultimately defeats him.

The history of the blockchain, the technology that powers bitcoin, is equally magical. From a dreaded name, limited to gossip to cool the water, to conversations in the meeting room, the blockchain has come a long way.

Bitcoin started in 2008 in response to the subprime crisis. In 2011 he gained notoriety for the association with Silk Road, the dark market for drugs and firearms. A few years later, bitcoin is a household name and, more importantly, has sparked interest in the blockchain. Businesses no longer fear technology.

Despite the triumphal march, many leaders and leaders are still in an enigma for the adoption of blockchain. The leaders are confused with the three common myths.

Bitcoin and blockchain are the same

Blockchain technology powers the bitcoin. Bitcoin has made Blockchain popular. The comparison ends here. Blockchain applications are far and wide.

Before bitcoin, there were attempts at digital currencies. The problem of double spending (duplicating and digitally spending multiple times the same money) prevented the success of digital currencies. Bitcoin has solved the problem of double spending by elegantly combining existing technologies: cryptography, peer-to-peer networks and decentralization. Bitcoin's success has generated over 2000 variants.

Bitcoin's success has rekindled the idea of ​​digitizing assets, beyond currencies. Inside, the blockchain (a variant of the DLT) authorizes a democratic, open and irreversible accounting register system. Imagine a worksheet that keeps records of land ownership. In the current world order, an entity owns and controls the spreadsheet. This leads to giving up trust for an entity, potentially prone to errors or violations.

In blockchain, the spreadsheet is shared with multiple entities (open and distributed). Entities participating in the network, through a pre-agreed (democratic) consensus mechanism, add new transaction to the ledger. Once a transaction enters the ledger, it can not be changed (immutable and irreversible).

In addition, platforms such as Ethereum, exploit blockchain capabilities and extend it further to the programming and implementation of software codes (smart contracts for example) on blockchain.

Blockchain is a hype

As with any emerging technology, a certain amount of hype is inevitable. In fact, the hype may have contributed to the adoption of the blockchain. Investors, businesses and individuals are now actively exploring ways to solve real-world problems.

Gartner plans the blockchain to generate an annual corporate value of $ 3 trillion by 2030. In its Hype cycle of 2018 for Blockchain Business, Gartner identifies new uses of the blockchain over the cryptocurrency hype.

The true power of open source projects lies in the communities. In a sense, the hype is good because it helps organizations and individual commit resources and experiment with ideas. As the saying goes, "The lotus flower blooms beautifully in the thickest mud."

Blockchain is not for businesses

The companies are bizarre entities, who want to get into the bandwagon blockchain, but hesitant. Companies see the potential benefits of intermediaries and redundancy that eliminate blockchain, acquiring a real-time view of their business and avoiding costly disputes and resolutions, but distrusting the problems of scalability and security that afflict the bitcoins.

Blockchain has separated from the bitcoin. The private flavors of the blockchain, which offer greater scalability and security, have started to leave the block, to meet the needs of businesses.

Hyperledger (led by Linux forums with a consortium of over 100 companies), Corda (another large consortium led by R3) and Quorum (by JP Morgan) are paving the way for the business houses.

Competitors are collaborating, cross industries are learning and organizations are maturing. While bitcoin has been around for 10 years, the corporate blockchain journey takes about a year. But it's happening with businesses.

In a 2018 PWC survey, 84% of organizations have at least some involvement with technology, with 52% of R & D projects and 25% in pilot and live projects .

So, start the game.

The Quidditch game has just begun. Players are ready. The rules have been formulated. The blockchain magicians are marching with the Nimbus 2000 broomstick. It is not long before a leader, like Harry Potter, emerges with his "Firebolt". The leader will soar in the blue sky and emerge victorious with the Golden Snitch in his hand.

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