Like any emerging technology, there is a lot of hype surrounding blockchain and what it may mean for various industries. Along with this hype comes the spread of misinformation. Due to how controversial cryptocurrencies have been in the media, blockchain has garnered much attention, which in turn has created many myths about the technology.
The following three myths have been propagated often; we hope to dispel these inaccuracies to paint a clearer picture for this technology.
One big myth surrounding blockchain is that it is inherently tied to cryptocurrencies; this could not be further from the truth. As was covered in “What is Blockchain?”, blockchain is the foundational technology that enables cryptocurrencies to exist. The notion that a blockchain is always tied to a cryptocurrency is inaccurate, when the reality is that cryptocurrencies rely on blockchain to function.
Another common misconception about blockchain technology is that it cannot be hacked. While blockchain is resilient by nature to many typical vulnerabilities, it is still susceptible to a wide range of attacks. The most notorious vulnerability is the 51% attack, wherein a single entity gains control over 51% of the blockchain and can then control the ledger. Like any piece of software or network, blockchains are also susceptible to code exploits and social engineering.
Blockchain has also been touted as a technology that can solve every problem for every industry. This, too, is a myth. While blockchain presents significant promise in a number of industries, it is counterproductive to assume that it is some miraculous technology that provides the perfect solution for every use case.