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Blockchain Technology

10.4.14  Reality

The illusion of immutability stems from its append-only data structure. However, the

fact is that the data block that has been created can be modified and reversed in spe­

cial circumstances by the participants. Participants can be state actors, individuals

or a company. Even changes in the distributed ledger can be possible if the network’s

participants decide this themselves. The vital participants are miners, who manage

the entire work. So, if a majority of miners decide to do so, they can manipulate or

modify the distributed ledger network.

10.4.15  Myth 8: Blockchain Records Can Never Be Hacked

or Changed/Blockchain Technology is 100%

Trustworthy, or Blockchains Are Truth Machines

Some myths about Blockchain focus on its security aspects, such as: Blockchain

records can never be hacked or changed, Blockchain technology is truly trustwor­

thy, or Blockchains are Truth Machines. The common myth is that Blockchains are

invulnerable to outside attacks.

10.4.16  Reality

The fact is that Blockchains can only provide a way of catching unauthorized modi­

fications for applications that are designed on top of them. Moreover, cryptography

technology – the technology behind Blockchain – needs to be trusted rather than

trusting the Blockchain. The cryptography method is embedded into Blockchain,

which enables it to provide the security level. However, Blockchain fails to check out

a trust level that arrives from external sources. For example, the Bitcoin-encrypted

network can be decrypted and hacked, which may lead to destroying its entire

Blockchain system. The fact is that Blockchain cannot verify the health of input data

and is best suited if the asset being transferred is part of a network, e.g. Bitcoins.

10.4.17  Myth 9: Blockchain Can Only Be Employed in the Financial Area

When it comes to Blockchain application areas, the financial sector inherently grabs

the first place, the reason being Blockchain’s first application, the Bitcoin crypto­

currency, which influenced this area. Major challenges posed by Blockchain in the

financial world have led foreign banks such as Goldman Sachs and Barclays to invest

heavily in it. This has created the myth that it can only be used in the financial sector.

10.4.18  Reality

In reality, Blockchain can be successfully utilized in varied areas. Application areas

include real estate, healthcare, insurance, supply chain or even at an individual scale

to build a digital identity. People can keep evidence of the availability of medical