Dispelling some common myths around blockchain.
1: A single person invented blockchain.
Unknown. “Satoshi Nakamoto” invented blockchain, but whether “Satoshi Nakamoto represents an individual or a group of individuals is a mystery.
2: Blockchain technology uses more electricity than Ireland.
Fact. A single bitcoin transaction uses about the same amount of energy as it takes to boil 36,000 kettles of water. That’s a lot of tea! By summer 2019, it’s estimated that the total energy consumption for blockchain will be roughly equivalent to the entire US output.
3: Without bitcoin there is no blockchain.
Fantasy. Blockchain is the underlying technology that enables the transaction ledger for bitcoin. Not vice versa. There can be many different blockchain types. E.G. Blockchain technology is not limited to cryptocurrency. However, because bitcoin was the first and most glamorous of the Blockchain applications, the two items have tended to blend together in the collective consciousness.
4: Blockchain records are unalterable
Fact. Blockchain records are formed from blocks that are chronologically stamped and unable to be changed.
5: Blockchain has the power to validate scientific studies (even outlandish ones)
Fact. Recent estimates suggest that there are about 2.5 million scientific studies published each year. However, researchers have a difficult time authenticating the results. Blockchain makes authenticating and certifying information faster and more efficient. So, if the scientific community comes around to NBA Star Kyrie Irving’s flat-earth hypothesis, blockchain could help cement it as fact.
6: Bitcoin miners dig underground.
Fantasy. Bitcoin mining is the process by which new transaction records are created and added to the bitcoin blockchain. These new transactions are created through customised software which solve complex math problems. New bitocoins are introduced into the system as payment to these bitcoin miners when they successfully solve the problem.
7: Blockchain requires a large intermediary, such as a government agency or corporation, to function.
Fantasy. Blockchain is a decentralised technology, which means that functions are the result of the network itself, rather than some third party.
8: Blockchain makes a great safety deposit box.
Fact. Because it’s a decentralised technology and cannot be altered, it’s a great way to keep your money protected from unwanted exposure.
9: Blockchain’s greatest asset is trust.
Fact. Because nothing on a blockchain can be altered it allows businesses to create atmospheres of trust in spheres where certification had previously been hard to come by.
10: Blockchain is going to be around for a long time.
Unknown. Blockchain is a relatively new technology that is still undergoing significant changes, but as a peer-to-peer network, it offers businesses a pathway into a very new way of capturing and storing information, ultimately transforming the way in which we transact and connect.