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Blockchain Technology

10.4.3  Myth 2: Blockchain Will Transform the World

It is usually said of Blockchain that it is such a powerful and revolutionary technol­

ogy that it is going to be widely accepted by companies worldwide to reap rich ben­

efits. However, this is only partially true.

10.4.4  Reality

In dealing with complex and technical transactions, Blockchain can play a

crucial role. It can deal with transactions like identity of a person or in trade

finance. The application of Blockchain in trade finance can help with cost

reduction and transaction speed. In addition, dealing with and maintaining a

traditional ledger can be inefficient in many cases. While Blockchain mitigate

the risk of a fraudster tampering with the ledger, it does not eradicate the threat

of fraud online and it still raises questions over confidentiality. So, it should

be noted that Blockchain has the potential to change the world but has still not

achieved its objective.

10.4.5  Myth 3: Blockchain Is Free

One of the most usual myths is that Blockchain is either free or very cost effective.

But the fact is that this is not true.

10.4.6  Reality

Blockchain is not cost efficient, nor is it cost effective to run the system. For pro­

cessing, it needs multiple computers for solving complex problems to have the same

opinion upon the final rigid results which is called a Single version of Truth (SVT).

Each block in a Blockchain employs massive computing ability to resolve a difficult

as well as complex problem, and all the services need to be paid for. Another fact of

Blockchain is Bitcoin mining, which requires very powerful hardware for processing

and consumes in the order of terawatt-hours of electricity, which indicates high cost.

Hence, it cannot be said that Blockchain is free.

10.4.7  Myth 4: There Is Only One Blockchain

It is a common belief that there is only one Blockchain.

10.4.8  Reality

The fact is that Blockchain has many different technologies, including public and

private versions, open and closed source, and many more. Considering a Bitcoin as

a public global Blockchain on the basis of its introduction can confuse any begin­

ner. So, on the basis of facts, private and hybrid Blockchain can also be considered

for different complex problems. Many other distributed ledger technologies, like