Of late, the blockchain technology has emerged as a revolutionary tool spurring acute interest amid the data community. Also known as the ‘distributed ledger’ technology, blockchain provides a way of recording digital transactions in a way that is crafted to be transparent, secure and efficient. The technology is robust and young. In the next few years, it is expected to hit the mainstream and drive commercialization.
No wonder, the blockchain technology is secure and full of positive outcomes yet there exist too much confusion and misunderstanding regarding its essence.
Myth 1: Blockchain is a database full of magical powers
Blockchain is nothing but a simple list of transaction journals – “This list is ‘append only so entries are never deleted, but instead, the file grows indefinitely and must be replicated in every node in the peer-to-peer network”. It doesn’t make room for any sort of physical data storage, like a PDF file or Word document.
Myth 2: Blockchain is the next big change (for good)
Of course, Blockchain is used to perform technical and intricate transactions. It works wonderfully when it comes to mitigating the risk of online fraud, nevertheless, it doesn’t completely eradicate the risks imposed by fraudsters. Thus, it also raises questions on data confidentiality.
Myth 3: Blockchain is free
Although people assume that blockchain is free, the hard fact is that it is neither inexpensive nor highly efficient – YET. It involves several computers to solve myriad mathematical algorithms to formulate a single immutable result, which is eventually known as the Single Version of Truth (SVT).
Myth 4: A single blockchain is in existence
Blockchain is a collective term used for different technologies that are closed or open sourced, available in private or public versions and serve a general-purpose or customized as per needs. However, the common element observed in all of them is that they follow a consensus mechanism and is fleeced up by crypto. Ethereum, Corda, Hyperledger, Bitcoin’s Blockchain and IBM and Microsoft’s Blockchain-as-a-service are all a part of Distributed Ledger Technologies.
Myth 5: Blockchain is the ultimate power technology
Of course, the code is powerful but it’s no magic. Bitcoin and blockchain technologies will definitely lead the future but their authority is limited to mathematics. They won’t replace the job roles of government or lawyers. Cryptocurrency is the fulcrum of blockchain and it’s still far from becoming mainstream.
Myth 6: Blockchain is used only in the financial sector
As a matter of fact, the first application of Blockchain was indeed a bitcoin cryptocurrency, which is a product of the financial sector. Nevertheless, the revolutionary technology has diverse applications across numerous sectors, including finance. Besides finance, blockchain is widely leveraged in healthcare, real estate and FMCG sectors.
At present, Blockchain Technology is evolving at a steadfast rate. Each day, volumes of data records are being created. Such humongous amounts of data need efficient management. For that, the Internet of Things is the key. Dexlab Analytics is a premier Data Science training institute in Gurgaon and we cover a plethora of in-demand skill training courses.
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