Blockchain has many conceptions. Every second person on the Earth is talking about it but what the heck are they talking, even they don’t know that. Blockchain in normal words can be thought of like a train with buggies with their individual value but connected with others too. Like this only, blockchain is a list of records called blocks which are linked using cryptography. Each block has a cryptographic hash of the previous block, a timestamp, and also, the transaction data. It is basically a collection of data and each block has its own data connection with other blocks.
In simple terms, a blockchain is a time-stamped series of records of data that is looked by a group of PCs not owned by any single entity. Every one of these blocks is verified and bound to one another utilizing cryptographic standards like a chain. People are unable to understand what it is about and there are many common misconceptions around blockchain. So, what Blockchain is not? We have listed some major misconceptions about Blockchain which people think are true:
- Blockchain isn’t any cryptocurrency
According to Indiashoppers, cryptocurrency is a digital currency without a central bank or a single head. And, there are many cryptocurrencies like bitcoins, altcoins, litecoins and many others in the market. But, cryptocurrency has significant differences from a business blockchain. For example, a business blockchain always keeps identity on the top and uses the support of transactions in place of computation and work.
- Not a product- a technology
The misconceptions have gone high and they don’t seem to come down in numbers. People who know really less of Blockchain or know nothing at all think that Blockchain is some kind of a product which is launched in the market and people can buy it. No, it is not! It is not a product, not a material, not a licensed software, it is nothing you think of it as. It is a technology that can be used to optimize your business solutions.
- Monotonous use case
Blockchain is not just a monotonous technology with one application that too in digital currency regulation. It can also be used for an audit trail of ownership- whether tangible resources or intangible. Blockchain has multi-verse of use cases- from digital rights, security purposes like private markets, microfinance, P2P Lending to record keeping.
- Not only for finance
Many people think that Blockchain is only for finance techies. Well, it’s not the case! Yes, Blockchain is associated with bitcoin but there are many other use cases of blockchain. From medical records, voting, oil industry, real estate, supply chain market, to social media, Blockchain is for every niche and not only for finance.
- It isn’t hardware either
Yes, it is true that churning bitcoins require tons of electric charge and energy which can be generated from GPUs. But, as mentioned earlier, Blockchain is not cryptocurrency either. Blockchain has no physical form and neither is it a tangible thing. Yes, Lockbox, blockchain’s first hardware wallet has been launched recently but blockchain hasn’t any materialistic form factor. It is just a software tech!
- Blockchain is totally legal
It is a myth that blockchain is illegal but it is not. Yes, Bitcoin status varies from country to country and in our country, India, Bitcoins are illegal as of now but they will get legalized one day or another. Many people recognize bitcoins as blockchain and this is a huge misconception. As I mentioned earlier, it is not. So, Blockchain is independent of Bitcoins and is totally legal in India. As a technology, India encourages blockchain in payment systems.
- You are not a criminal
Blockchain is a technology and it is not like illegal hacking. It is purely legal and you won’t be tagged as a criminal if you are playing with this technology. Yes, Bitcoin is banned in many countries but cryptocurrency is just a use case of blockchain- Not whole story of blockchain revolves around cryptocurrency. Blockchain helps you to connect with the world business partners and beautify the future of finance. Unlike hacking, you are not doing something illegal when you are using Blockchain. It is totally legal and doesn’t shy to jump into it.You can see latest result from fresh hiring.
- Not multiple blockchains
It is a common misconception that there is only a single blockchain. It is not true at all! If you have been told about it like this, then it is totally false. A fallacy! There are different categories of blockchains: Private, Public, and Consortium. All of these blockchain types have their own usage like public blockchain doesn’t have any restrictions on access, private blockchain type having restrictions, and consortium blockchains are permission-ed ones that lie between public and private blockchains. So, if you are told with such a lie, then don’t believe it- blockchain has many types.
