Three Biggest Misconceptions Regarding Bitcoin Blockchain
Every transaction logged in the blockchain is encrypted and openly based on the technology of public ledger. It is cryptographically locked and frozen in an inalterable public record. Have a look at the three biggest misconceptions regarding the blockchains:
- The blockchains can be utilized for everything without exception
Although the code is strong, but it is not magical and can’t use everywhere. For lots of years, the blockchain is an authority related to the maths, not lawyers or governments. Some developers think that the blockchain and smart contracts will replace money, lawyers and other arbitration bodies in the future. But still, it is only limited to the number of cryptocurrency transactions and still very far to become a mainstream money.
- The blockchain can be the foundation of a worldwide economy
There is corporate or national entity who controls or owns the blockhains. That’s why evangelists believe that the Bitcoin and private technologies can offer foundational support for many encrypted and trusted cryptocurrencies.
A Gartner report has recently stated that the blockchain size is similar to the network of NASDAQ in scale. It may change if the cryptocurrency takes off and records generated become larger. But, presently the network is same as the contemporary financial networks.
- The blockchain ledger is irrevocable and locked
The large scale transaction database such as bank records are tied to some financial organizations. In blockchain technology, the transactions are verifiable and code is secure. The network rejects the fraudulent transactions, which prevents fraud.
It is largely believed by the people that the rewriting historic transactions is not in the interest of the participants because the mining the chain offers financial incentive in the form of Bitcoin. For now, the computational resources may improve with time and the impact of the processing power in the future on the contemporary integrity of bitcoin will remain ambiguous.