7

Distinguishing Facts from Myths

1.3.11  Blockchain Is “Trustless”

In blockchain, trust level can be minimized but cannot be avoided. At least the

base-level cryptography must be under trust. Permissioned blockchain can be the

best minimum-level blockchain implementation if configured correctly. In this

case, blockchain enables participants to validate transactions and verify them

independently. So from this, we can say that blockchain can reduce or minimize

the deed of trust. Blockchain can be used to integrate knowledge and instruc-

tions for a broad variety of applications as an immutable and tamper-proof public

records archive for documents, contracts, properties and assets. Smart contracts,

for example, are automated, self-executing activities in agreements between two or

more parties; multi-signature transactions, on the other hand, necessitate the use

of multiple signatures.

Under these scenarios, the benefit of blockchain is that it eliminates the need for a

trustworthy third party (such as a notary) and enforces the execution of instructions

via a cryptographic code, protecting participants from fraud and lowering manage-

ment costs. There are substantial benefits of automation, transparency, auditability

and profitability [11].

1.3.12  Blockchain Is a “Truth Machine”

Blockchain is also subject to Garbage In Garbage Out (GIGO) when it uses third-

party non-native applications or external inputs. These inputs may go directly to the

network as a regular entry, as blockchain cannot assess whether a third-party entry is

valid or not. It can even trigger smart contracts, which may change the entire system.

So, there should be a trusted third party who can validate the external inputs before

inserting them into the existing blockchain.

1.3.13  Only Leading Developers Can Create Their Blockchains

The bitcoin blockchain is open source and so available for forking. Anyone who has

access to the internet can fork this version and develop their own version. We see

thousands of cryptocurrencies in the market, minor variations of bitcoin in some

form. For an extended period, only leading developers were given access to the

blockchain code, and thus, it was available only to them. But now, the open-source

code is available, and developers can use it.

1.3.14  Blockchains Can Be Used for Anything

Blockchain is an instrumental technology, and one can think of many real-time con-

venient scenarios. It could be suited to, for instance, connecting students to block-

chain and tracking their studies or connecting a citizen in blockchain and tracking

their activities. It looks so apt in these situations, but it is not mature and is still in

the very earliest stage. So currently, everything is in the experimental phase and not