Now that more people are aware of Blockchain, there are more Blockchain lies than ever before. Human beings are impressive, it is as if we cannot live without limiting beliefs and lies. Who comes up with these things?
A few years ago, the goal was to get more people to know Blockchain; thankfully they were able to catch on and today Blockchain is a buzzword. Today, people know of Blockchain but most of the information is not necessarily accurate. The goal then becomes to debunk these lies so that people are not basing financial decisions on lies and rumors.
Here are a few Blockchain myths whose source remains unknown.
- Blockchain and Bitcoin are the same thing When most people come across one of these terms, they automatically think of the other one. Bitcoin is the most popular Cryptocurrency. Blockchain, on the other hand, is a decentralized ledger technology that powers cryptocurrencies among many other things,
- All Blockchains are public. Most popular Blockchains are public, a good example is the Ray Coin Global platform which is a digital currency marketplace that fights poverty and champions borderless transactions. However, before you get it twisted that is not the only existing type of Blockchain. We have hybrid and private Blockchains all of which play different roles.
- Blockchain is a Cryptocurrency (cute). Cryptocurrencies are digital assets whose operation is entirely online while Blockchain is a decentralized ledger technology that stores record publically and permanently. For instance, Ray Coin Global is the Blockchain that the Ray Coin token is based on. Ray Coin Global is a Cryptocurrency marketplace that utilizes Blockchain to present its users with opportunities to makes money online and build a business community. You need the Ray Coin token to make transactions on the platform.
- Blockchains are full-proof. This one is not too far from the truth, Blockchain is highly secure thanks to the cryptography mechanism. However, Blockchains are still susceptible to hacks and compromise. In fact, these hacks can be quite detrimental because Blockchain transactions are irreversible.
- Blockchain is a cloud-based database. This one is a very smart myth I must admit, all the same, it’s still inaccurate. First of all, Blockchain is downloaded to the nodes rather than being operated on the cloud. Secondly, the data storage also differs from that of a cloud database in that instead of being stored in formats such as word documents, the records are stored with proof of existence. It means that there is evidence that a specific document exists without necessarily showing the actual document.
- Blockchain transactions are anonymous. Blockchain transactions are only partially anonymous. You see when you make a transaction, the public address of your wallet is recorded. If there is ever a reason to track you, say you got involved in illegal activities, that address can be used.
- Blockchain transactions do not have charges. The transaction fees are much lower than the traditional transaction fees offered by banks. There are various charges involved in Blockchain, from mining fees to gas fees.
- Coins are the same as tokens. Bitcoin is a coin while Ray Coin is a token, unfortunately, people ignorantly use these two terms interchangeably. A coin is a native currency of a given Blockchain platform, it gives the privilege of participating on the network. A token, on the other hand, is an asset that is issued by a Blockchain-based project; it is used on the platform but doesn’t come with participation rights.
- Smart contracts are valid legally binding contracts. Contrary to popular belief, smart contracts are lines of code that can execute different activities naturally while addressing the specific condition. They serve as incredible assets in driving digital transformation. Most people think that they are exactly like the traditional contracts, which could not be further from the truth.
To be knowledgeable on Blockchain and cryptocurrencies, it is crucial to collect the right information. This entails debunking myths and probably educating the sources of these lies. Do you ever just wonder where these lies come from?