New technologies in the market always come with a shroud of mystery and confusion as to what they are and what they can or can’t do. As a result, there are misconceptions created. In recent times, blockchain has become one such technology with an array of misconceptions surrounding it, particularly at the enterprise level.
In reality, simple research in reputable blockchain blogs or consulting with experts in the field can point you in the right direction as to what blockchain technology is all about. In this article, you’ll find four common myths people believe about enterprise blockchain that are entirely untrue.
Hopefully, you’ll be able to jump into this innovative tech’s wagon and transform your business by the end of this read.
Whether you know quite a few things about blockchain technology, you could do with some research and education, or you’re a complete novice, you may have encountered some of these misconceptions. Look at some of them and uncover the reality of things.
Many people believe blockchain technology is only for the cryptocurrency world and may not have what it takes to build enterprise-level processes. Some also believe that it presents security and privacy issues due to its transparency. Others believe blockchain and cryptocurrency are synonymous, using the terms interchangeably.
However, blockchain is not a technology that can only be used in cryptocurrency, although the two have strong ties. Blockchain is a public ledger you can use to record and store various transactions. It offers multiple benefits to businesses, including decentralization, transparency, and anonymity.
To that end, you can use blockchain technology in various ways to record and store transactions. Blockchain for enterprise allows you to build your apps and processes on a permission network, where you set the rules to govern the conduct of the participants.
Initially, blockchain was indeed created for bitcoin, whose uses lean towards the finance industry. But that was then. Currently, the technology has numerous use cases across various industries. You can use blockchain in healthcare, supply chain, logistics, gaming, and many others. Blockchain in real estate industry offers an innovative way for buyers and sellers to connect and transact through smart contracts, verify the authenticity of deeds, and effect payments more securely.
In addition, blockchain uses identity verification, hiring and payroll management, and gamification mechanism to help create internal economies. You can also use it to secure and restrict sensitive business data to only authorized persons within the chain. The technology provides transparency and improves transaction speed by eliminating intermediaries.
The common belief that blockchain is a cloud-based database is another common misconception. This confusion may stem from the fact that both of these technologies have emerged in recent years and have a connection to data storage in some way. However, they are quite different in terms of functionality and how each store’s data.
To be clear, blockchain records are immutable or partially immutable, as in the enterprise blockchain. But you can alter data stored in the cloud. Again, cloud computing services can be delivered over the internet. In the blockchain, data is stored in a distributed ledger over the internet using various styles of encryption and hashing.
It is also possible to set data visibility in a cloud environment so that it is either publicly available or not. Blockchains are mostly public ledgers that allow anyone to see a record of every transaction that has ever taken place. Notably, enterprise block allows only a particular group of people to view transactions.
Cloud-based databases also don’t include Proof of Existence (PoE), allowing anyone to store an online distributed proof of existence for any document anonymously and securely. This proves unequivocally that a specific record exists without showing the original document.
Another common myth is that blockchain technology is prohibitively expensive compared to other options, such as central databases or the cloud. However, because of the open-source nature of its underlying technology, blockchain applications may come at a lower cost than traditional databases.
This is the case particularly when you implement the technology as a network of users. This solution reduces each player’s costs because you’ll be sharing implementation expenses. For instance, permissioned blockchains, used in business applications, are more cost and energy-efficient than alternatives because of their structure.
However, if you try to build your blockchain networks, you need to factor in other costs such as those Research and Development (R&D) and transaction costs that could make the technology quite costly. But you can save money by building your solutions on existing innovative blockchains that have already made significant progress in reducing their R&D, overhead, maintenance, and transaction costs.
As a relatively new technology in the market, blockchain has grown significantly and has attracted a lot of attention across all sectors. It’s expected that there are various myths about technology. Doing proper research on blockchain technology, mainly its enterprise uses, is key to understanding what it is and how you can utilize it in your business.
As you look at the common misconceptions about the technology and its uses above, hopefully, you have a clearer perception and understanding of it. To take the proper steps and capitalize on its benefits, it’s only fitting that you debunk the misconceptions and get the correct information.
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