Blockchain Myths

Blockchain is not Bitcoin

Blockchain is a technology that allows peer-to-peer transactions to be recorded on a distributed ledger across the network. These transactions are stored in blocks and each block is linked to the previous one, creating a chain.

Bitcoin is a cryptocurrency that makes electronic payment possible directly between two people without going through a third party like a bank. Bitcoin was the first blockchian application which uses the blockchain as underlying technology to use it as a database ledger.

Blockchain is not a cryptocurrency

Blockchain is the platform which brings cryptocurrencies into play, it's mainly a database which holds transactions records and forms the network. This network creates the means for transacting and enables transferring of value and information.

Cryptocurrencies are the token used within these networks to send value and pay for these transactions. You can see them as a tool on blockchain.

Blockchain, Bitcoin and Distributed Ledgers are not the same thing

Let's clarify this point!

Bitcoin is a cryptocurrency that uses blockchain technology.
Blockchain is a type of distributed ledger.
Not all distributed ledgers are effectively blockchains.
(A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions or geographies. It allows transactions to have public "witnesses", thereby making a cyberattack more difficult.)

Blockchain doesn't exist on the cloud

Many believe blockchain is a database that exists on the cloud. The truth is that Blockchain is a ledger distributed across a number of members computers.

Blockchain is not a product

Blockchain itself is not an app or a product.
Many Dapps(decentralized applications) are being based on blockchain but the blcokchain itself is not that application or a thing.
Blockchain's utility comes from an appropriate set of applications built on top of it.

All transactions using blockchain are not necessarily anonymous

Just because cryptos transactions allow a degree of anonymity to its users doesn't mean that all blockchain transactions work in the same manner.
Truth is, several blockchain networks adhere to KYC/AML regulations and offer great transparency.

Blockchain is not used only for powering cryptocurrencies

Cryptos and banking in general are not the only industry that could be transformed by blockchain technology.
Banking is just the beginning.
Blockchain can be used for fields as diverse as music to healthcare, to voting, to supply chain management...

There is not a single blockchain system for everything

Blockchain networks can take many forms.
It could be private, public or there are consortium blockchain networks(Consortium blockchain is a system that is 'semi-private' and has a controlled user group, but works across different organizations).

Blockchain records can be hacked or altered?

Blockchain is not invulnerable to outside attacks. No system or database is completely secure, but the larger and more distributed the network, the more secure it is believed to be.
Blockchain can provide to applications that are developed on top of them a way of catching unauthorised changes to records.