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Myths, Realities and Future
10.4.29 Myth 15: Blockchains Consume High
Volumes of Energy, Increasing Costs
That Blockchains consume high volumes of energy, driving up costs, can be consid
ered to be true to some extent. However, it doesn’t apply to all Blockchain transac
tions and depends on the mining being used.
10.4.30 Reality
Depending upon the way the Blockchains are used, such as permissioned or permis
sionless, this myth can be suitably evaluated. Mining done through permissionless
Blockchains inflates costs. However, this is false for permissioned Blockchains, as
they do not normally include cryptocurrency mining. The administrator of reliable
members designs the rubrics to authenticate information in the system on the chain.
These Blockchains are more cost effective (Hall, 2019).
10.5 CONCLUSION
Blockchain has emerged as an exciting new technology that is being widely used nowa
days because it provides better transparency, better traceability, higher security, better
efficiency and speed, and is cost effective. From supply chain to manpower resources,
Blockchain influences all the sectors of industries it touches. Blockchain implements
applications in a decentralized and secure way, ensuring certainty. This has led to
the widespread adoption of Blockchain in a trustless society. However, exciting new
technologies often create disruption in the marketplace; disruption breeds misunder
standing, and Blockchain technology is no exception. Among several technological
developments in the current era, Blockchain has been an eminent challenger. So, the
lack of transparency for understanding Blockchain has resulted in the generation of
several Blockchain myths over time, which may hinder people from using or adopting
it. Myths about distributed ledger technology and its working mechanism – Blockchain
is the only Bitcoin, is secure, cannot be manipulated, etc. – pose the threat that indus
tries will avoid exploiting its extensive potential to influence constructive development.
This generates the pressing need to explore the various myths and realities related to
Blockchain and separate the myths from realities. To this end, this chapter has dis
cussed Blockchain technology and its concepts and has presented the various myths
and reality associated with Blockchain. The chapter has collected and reviewed the
contents of various research papers and online sources to serve this purpose. It has
attempted to sort or separate the myths from the reality, highlighting the fact that using
Blockchain is not restricted to only some domains. The chapter has clearly unravelled
some of the commonly assumed misconceptions and removed misperceptions, thereby
providing users with a better understanding of Blockchain. It is hoped that the chapter
will greatly assist users in understanding the concepts, knowing the myths and reality
associated with Blockchain, and gaining insight into a few of the common mispercep
tions. It is also hoped that the chapter will provide a strong foundation to researchers
who wish to pursue research in this domain.