Are you hesitant to start using blockchain technology because of all the things you’ve been hearing about its downsides?

It can be difficult when you don’t know how to tell what is true and what isn’t true about the blockchain. If you choose to start using it to make investments, you could earn a lot of money, but you could also lose it. This is why it’s important to be well-informed about its benefits and downsides. 

If you want to find out about the biggest blockchain myths are, read on and we’ll tell you what you need to know. 

1. Bitcoin and Blockchain Are the Same

Even though it is true that Bitcoin was the first cryptocurrency to use blockchain technology, it’s possible to use blockchains for many purposes that don’t just involve cryptocurrencies.

Blockchain is a kind of distributed ledger technology, but this does not mean that all distributed ledgers are blockchains. 

2. Blockchains Are Not Efficient

It is possible for blockchains to be inefficient but this is usually not the case. For example, it’s often the case that permissioned blockchains are more cost-effective and use less energy than other types of blockchains. 

In order to function, many blockchains use a consensus mechanism. This is known as proof of work (PoW). PoW is usually associated with networks that mine cryptocurrencies.

But the truth is that there are networks that don’t use PoW as their consensus mechanism. This makes them more efficient and more cost-effective. 

3. You Need to Be an Educated Expert in Order to Work With Blockchain

This couldn’t be farther from the truth. It is a complicated thing to build blockchain technology. But you can work with blockchain in many ways that are easy and rewarding. 

There are many artists and art collectors who are using technology in order to buy and sell digital art. The rise in popularity of NFTs is making it easy to do this. If you want to start getting involved, it’s a great time to buy NFTs. 

4. All Data That People Put Onto the Blockchain Is Public

Transactions on the public blockchain are visible to everybody. But the blockchain does not connect peoples’ identities with the transactions they make. Therefore, the information that people share on the blockchain is not at risk of being hacked. 

5. Blockchain Is Unhackable

Blockchain technologies are very safe and secure. People choose to use them because of the security that they offer. With this being said, there is a possibility, in very rare circumstances, that people can hack users’ data. 

It’s also important to know that some kinds of blockchain are more secure than others. 

Don’t Pay Attention to the Blockchain Myths

There are many blockchain myths that are not based on anything that is true. If you are afraid to start using this exciting technology, make sure that you know what this true and what isn’t. 

If you want to find out more about the benefits of the blockchain, don’t forget to check out the Personal Finances section of our website. We publish many great articles on this subject. 

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Nick Jones

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