Blockchain is not a pretty new industry, but it is indeed new for millions of people around the planet. Knowledge about this industry is also less among the people who have heard about it, and could this be the reason why blockchain myths are spiraling up?
Blockchain provides decentralized, distributed, and secure features for cryptocurrencies and beyond. Just blabbering the commonly known facts about blockchain. But we need to dive in and dissect the blockchain myths that are on everyone’s lips.
Myth 1: Blockchain is the same as Bitcoin and other cryptocurrencies
Truth: In reality, blockchain is not the same as Bitcoin and other crypto; instead, it is an underlying technology used in crypto, including Bitcoin. People believed in this misconception because Bitcoin started taking names before its technology was well-known.
In short, cryptocurrencies are coins leveraging blockchain technology.
Myth 2: Blockchain is only used for crypto
Truth: A very well-echoed myth! As cryptocurrencies used blockchain technology for the first time, people believe that the technology is limited to crypto alone. But the fact is, blockchain applications are vast and extensive, starting from safe data records, voting, and real estate to artist royalties, lifestyle, and fitness.
Myth 3: Blockchain is not hackable
Truth: One of the key myths is the robust, secure feature of blockchain. Does it really happen? The answer is no, but yes as well. And how? Blockchain provides security and safety over information, transactions, and other info storage. The cryptographic and decentralized nature of the technology often gives security, but there have been cases where hackers have exploited several blockchain-based projects, particularly due to poorly designed applications and smart contracts.
Myth 4: Blockchain and Web3 are synonymous
Truth: Blockchain and Web3 are used interchangeably, but they are not the same thing. The reason is, blockchain is a technology, whereas Web3 is a big vision or concept. Blockchain is a part of Web3, and Web3 is bigger than blockchain. That’s it!
Myth 5: Blockchain is totally anonymous
Truth: Since the anonymous feature of blockchain technology became so prominent, people blindly believe that it is always anonymous, and data recorded on it cannot be traceable. A big no, is the truth! Public blockchains like Bitcoin and Ethereum are open and accessible networks, and wallet addresses on them are traceable and visible.
Myth 6: All Blockchain projects are decentralized.
Truth: This is also a myth, and it is hard to digest that it is a myth. Just because a project deploys blockchain technology does not mean it is completely decentralized in practice. Several blockchain projects, such as BNB Chain, Ripple, and VeChain, are centralized or semi-centralized.
Blockchain is, ofcourse, a robust and transformative technology, but not a mystery or magic! Knowing these real blockchain stories can prevent you from getting caught in the hype. You may be a crypto newbie, a mid-level blockchain enthusiast, or a crypto buff, but understanding exactly what blockchain is is essential in moving ahead in the industry.
