3

Distinguishing Facts from Myths

• Blockchain technology works without intermediates; therefore, the transac-

tion happens fast without charge or with a very nominal charge.

Some organizations tend to adopt new technology without understanding it, even if it

is not necessary, due to overhype of the technology. Many organizations are afraid to

implement the new technology due to misconceptions revolving around the technol-

ogy, and blockchain has not been immune to this. The next section will reveal the

facts of the myths revolving around blockchain technology.

1.3  MYTHS VERSUS REALITY

1.3.1  Blockchains Are Public

When we define blockchain as a global peer-to-peer network with transactions stored

as blocks of chains across the network, we may think that it is a public platform and

that since these blocks of nodes are spread out on a global scale, the data is accessible

to all, and every activity happening in the network is visible to all. This is wrong;

different security measures within the blocks and network, and even organizational-

level accessible settings, are there.

There are different types of blockchain implementations, such as public, where

data is visible to all in the network; private, in which data is structured and accessible

to only designated people in the network; permissions, which are defined roles and

accessibility levels with network usage regulations; and permission-less, where there

are no regulations on network usage. [2]

1.3.2  Blockchain Is the Same as Cryptocurrencies

We have all heard the jargon of blockchain and cryptocurrencies like bitcoin. Most

of us have a feeling that both are the same. But the fact is that cryptocurrency is an

FIGURE 1.1  Overview of blockchain. (From Hileman, G. and Rauchs, M. Global

Blockchain Benchmarking Study, Cambridge Centre for Alternative Finance, 2017. Available

at: https://ssrn​.com​/abstract​=3040224.)