The last couple of days have managed to bring about large changes to blockchain-based digital currencies such as Bitcoin and Ether, as both have managed to once again break their all-time high. More exactly, Bitcoin has managed to surpass the $1,600 mark thus reaching a new all-time high, whereas Ether, the crypto-fuel behind Ethereum has increased with 25%, thus reaching $100.
With these aspects in mind, now is about time that we go ahead and help debunk a few myths associated with the blockchain network, so readers can get a better understanding of what the blockchain can, and cannot do, regardless of how it’s being used.
To kick things off, a blockchain is basically a network that offers string of crypto-proof that are audited and verified in a public network by nodes, which are basically computers throughout the world that actively verify the authenticity of transactions to determine whether it truly took place, and what its conditions are. As we’ve often talked about the huge potential of the blockchain network, it is important that readers are aware of some of the main facts and truths associated with it.
There isn’t one blockchain
Upon reading about the blockchain and its potential, readers may often feel confused and tend to believe that there’s one, unique blockchain network powering everything up. Incorrect. In fact, there are hundreds of blockchain networks available on the market. One runs Bitcoin, another runs Ether, and yet another runs LiteCoin. While there are big networks which are also public, where anyone can participate, there are also semi-open blockchains, such as Ripple, where certain conditions have to be met prior to being able to participate on the network. There are also private, entirely-closed blockchain networks that the public cannot use. These are often used for inter-company projects, or by banks and other financial institutions experimenting with the network.
Blockchain Networks can in fact, be hacked or altered
Indeed, blockchains offer great transparency, and often cannot be interfered with. But there are exceptions. Blockchain networks are not entirely immune to outside attacks. However, the larger a network is, the more secure it ends up being. Most of the times, altering records on the blockchain network requires a consensus, which can often be achieved if 51% of the active nodes vote in that direction. While not very likely, it is entirely possible for records to be altered if a joint-effort is made.
The Blockchain network has numerous commercial and business applications
Most readers who aren’t well-versed with blockchain networks, tend to believe that the technology can only be used for the transfer of digital currency. This is false. In fact, due to their nature, blockchains are known to create a model that can be used to store sensitive data, and actively verify its accuracy. The number of potential uses is close to infinite. For example, the blockchain network can be used to send out proof of payment, and then used to receive stock ownership. People can also use it to vote for political candidates, and then get their very own confirmation, all on the network.
Based on everything that has been outlined so far, we hope that these three facts have managed to bring about a better understanding of blockchain networks, and how they truly work.