Blockchain is a technology that is gaining more and more prominence in the market due to its ability to securely record and verify transactions, transparent and decentralized. Originally developed as the foundation for the cryptocurrency Bitcoin, the tool has been expanding to various applications in several industries.
The blockchain, it is nothing more than a data structure that records transactions in blocks linked in a chain, forming a kind of digital ledger. Each block contains a set of verified transactions and a hash that links it to the previous block. Thus, once a block is added to the chain, it cannot be modified without changing all subsequent blocks, ensuring data immutability
Given its relative novelty and complexity, it is common for erroneous concepts to permeate its functioning 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 the subject
Myth 1: Blockchain is only for cryptocurrencies
Although blockchain was initially developed as the foundation for the cryptocurrency Bitcoin, its applications go far beyond digital currencies. Technology can be used in sectors such as agribusiness, health, logistics, energy to record and verify transactions securely and transparently
Myth 2: Blockchain is completely anonymous
The blockchain is a pseudonym, not anonymous. Even though the identities of the parties involved in transactions can be masked by encrypted wallet addresses, transactions can still be traced in the public record
Myth 3: Blockchain is an insecure technology
Security is one of the main strengths of this tool. Thanks to its decentralized architecture and use of cryptography, technology offers a secure way to record and verify transactions. However, like in any system, security can be compromised by poor practices or human errors
Myth 4: All blockchains are the same
There are different types of blockchains, including audiences, private and permitted, each with its own characteristics and use cases. They can be configured in various ways to meet specific needs
Myth 5: Blockchain is just a database
Although technology is a form of distributed database, it also offers additional features, as decentralization, transparency, and the ability to verify transactions in real time, making it more than just a common database
