Blockchain is a technology that is gaining more and more prominence in the market for its ability to record and verify transactions in a secure, transparent and decentralized manner.Originally developed as the basis for the Bitcoin cryptocurrency, the tool has expanded to various applications in various industries.
The blockchain is nothing more than a data structure that records transactions in linked blocks on a chain, forming a kind of digital ledger. Each block contains a set of verified transactions and a hash that connects it to the previous block. Thus, once a block is added to the chain, it cannot be modified without changing all subsequent blocks, ensuring the immutability of the data.
Given its relative novelty and complexity, it is common that misconceptions permeate its operation and applications.To make the most of this innovative technology it is important to understand its limitations and demystify misconceptions.
Check out five common myths about it!
Myth 1: blockchain is only for cryptocurrencies
Although blockchain was initially developed as the basis for Bitcoin cryptocurrency, its applications go far beyond digital currencies.The technology can be used in sectors such as agribusiness, healthcare, logistics, energy to record and verify transactions in a secure and transparent manner.
Myth 2: the blockchain is completely anonymous
The blockchain is pseudonymous, not anonymous.Even though the identities of the parties involved in transactions can be masked by encrypted wallet addresses, transactions can still be tracked in the public ledger.
Myth 3: Blockchain is an insecure technology
Thanks to its decentralized architecture and use of encryption, the technology offers a secure way to record and verify transactions.However, as with any system, security can be compromised by bad practices or human failures.
Myth 4: all blockchains are the same
There are different types of blockchains, including public, private and permissioned, each with its own characteristics and use cases.
Myth 5: blockchain is just a database
While the technology is a form of distributed database, it also offers additional features such as decentralization, transparency, and the ability to verify transactions in real time, making it more than just a common database.
