The blockchain ecosystem is the most talked about technology amongst Fintech leaders. It is gaining traction amongst businesses and organizations. Considered as the digital ledger, it is the most transparent technology. It is decentralized, with data stored in each block and through a network of systems or computers. Be it in conducting political elections or observing transparency in philanthropy, the scope of using Blockchain has expanded. But as the technology permeates, certain misconceptions might derail Blockchain into adoption. In this article, we will debunk five myths or misconceptions that have been flooding around the industry.

All Blockchain Ecosystems are public

Many individuals have assumed that because of the arrival of global public blockchains like Bitcoin, every Blockchain is a public fact. However, this is one of the most common Blockchain ecosystem myths that can be perplexing to newcomers. In fact, public blockchains aren’t the only sort of Blockchain available. Private and hybrid blockchains are also appropriate for a variety of applications.

The launch of Bitcoin triggered a unique phenomenon that affected all financial institutions and individual businesses. Permissioned Blockchain, often known as federated or private Blockchain, is the name given to this phenomenon. Many of the distributed ledger technologies in use today are examples of various sorts of Blockchain. So there’s one myth out of the way.

Blockchain Ecosystem  is only used for Cryptocurrency

Cryptocurrency is observed as the hot cake in the business and finance world. Since the inception of Bitcoin, many financial institutes have tried their hands over Cryptocurrency. A cryptocurrency is a form of digital or virtual currency with decentralized networks based on a blockchain ecosystem, which acts as a digital ledger in various distributed systems. Undoubtedly cryptocurrencies are governed by Blockchain, but the misconception is that Blockchain is limited to Cryptocurrency. Organizations like Fonterra and Lition are expanding the scope of blockchain technology in healthcare, music, philanthropy, elections, and developing drugs. In contrast, cryptocurrencies are being used for digital transactions and payments amongst many organizations.

Blockchain and Bitcoin are the same things

The arrival of Bitcoin in the market created a lot of havoc. While countries were scrutinizing it under the lens of secure transactions, many organizations were figuring out the mechanism of Bitcoin. A common misconception that has gained traction is that both Blockchain and Bitcoin are synonymous. However, Bitcoin is a digital currency, heavily governed by Blockchain, and has confined usage with only financial institutes. The blockchain ecosystem is a digital ledger configured for multiple use cases at the same time. With its capability to record and store data and its feature of generating encrypted signatures known as a hash, its usage is not limited to financial institutes.

Only one type of Blockchain Ecosystem

This is an age where new technologies are emulated fast, and the original idea is expanded and applied to multiple domains. The blockchain ecosystem is not an exception to this. Indeed, Bitcoin was the first Blockchain, but since 2016, more than 200 types of Blockchain have been generated to enhance operations and maintain transparency. The most significant kind of Blockchain is Bitcoin and Ethereum. The second type of Blockchain is Private, which requires permission and invitation from the network administrator, e.g., Hyperledger. The third type is hybrid Blockchain, which works on the principle of both public and private Blockchains, thus combining the former’s privacy benefits with the latter’s security and transparency.

Blockchain Ecosystem is tamperproof

The blockchain ecosystem is transparent but certainly not tamperproof. It uses proof of work, a system that monitors the activities in the Blockchain with every transaction or data added. It upholds the record of every user who has used Blockchain across the network of computers or systems. But any alteration in the computational processor coding process can disrupt the entire Blockchain. The tampering by an external factor alerts the authority, but the tampering/alteration becomes challenging to detect.

Blockchain is not Decentralised.

When Bitcoin was introduced to the world, many experts and Fintech advisors applauded its system to be not decentralized. Undoubtedly, the Blockchain ecosystem is a technology known for having a decentralized network so that activities can be surveilled. Nonetheless, since it’s a growing technology and fantasized by many organizations for benefits, a handful of individuals can externally make Blockchain a decentralized network. By investing heavily in the computer’s hardware, these organizations can invade the transaction blocks, thus disrupting the entire process of Blockchain. Nevertheless, Blockchain’s open-source coding system and robust architecture can thwart such notorious behavior.