Blockchain has been a buzzword for a few years now. But what does it really mean? Blockchain is essentially a distributed ledger that records transactions chronologically and publicly. Its database is not stored in any single location; instead, it is shared across a network.
Blockchain is applied in various ways, from banking to the music industry, and it’s only going to become more prevalent in the future. However, since the technology is still nascent, there are many misconceptions about what exactly it does for us.
Myth #1: Everything on blockchain is the truth
Blockchain establishes the truth or validity of transactions through various individuals, also known as miners, who analyze them and certify their genuineness.
However, if a majority of the miners collude and hack the process, they can carry out fraudulent transactions that others may not pick up. The risk is heightened if the blockchains are smaller and more private in nature, like in banks.
Moreover, even if the miners assess independently, incorrect inputs can lead to false outputs. For example, fake invoices will be treated as valid if blockchain’s conditions are met. It cannot judge if the inputs given are factually correct.
Continue reading: https://yourstory.com/2021/10/six-common-myths-blockchain-debunked/amp
Blockchain is applied in various ways, from banking to the music industry, and it’s only going to become more prevalent in the future. However, since the technology is still nascent, there are many misconceptions about what exactly it does for us.
Myth #1: Everything on blockchain is the truth
Blockchain establishes the truth or validity of transactions through various individuals, also known as miners, who analyze them and certify their genuineness.
However, if a majority of the miners collude and hack the process, they can carry out fraudulent transactions that others may not pick up. The risk is heightened if the blockchains are smaller and more private in nature, like in banks.
Moreover, even if the miners assess independently, incorrect inputs can lead to false outputs. For example, fake invoices will be treated as valid if blockchain’s conditions are met. It cannot judge if the inputs given are factually correct.
Continue reading: https://yourstory.com/2021/10/six-common-myths-blockchain-debunked/amp
