Learn about the most common myths about blockchain technology.
Myth #1 Blockchain = Cryptocurrencies
The first myth is that Blockchain = Cryptocurrencies. This statement is incorrect, since Blockchain has many more applications apart from cryptocurrencies, such as tokenization or the registration of documentary evidence. Besides, there are some cryptocurrencies that use DLT technologies other than Blockchain. At ClimateTrade, each carbon credit of the projects published on the platform is tokenized and registered, and the modifications that occur on them are alsö registered.
Myth #2 Blockchain for everything
The second myth is that Blockchain can be applied to absolutely everything. This is something that is often read in the media and among many communities. However, to take full advantage of Blockchain technology and to provide a differential value regarding traditional database technologies, transparency and immutability needs are key points to consider, as not all applications have those needs. At ClimateTrade, Blockchain technology is used to guarantee the traceability and transparency of all operations on the platform.
Myth #3 fast and anonymous
The third myth is that Blockchain is fast and anonymous. The speed of a Blockchain network depends on the implementation. The capacity of newer networks like Algorand is notably superior compared to older networks like Bitcoin or Ethereum. On the other hand, all the operations carried out in the majority of Blockchains are traceable and identifiable to the different “wallets” that although they are totally anonymous at the start, as operations are carried out, a profile can be created regarding that account; therefore, to achieve anonymity, it is essential to be very careful with how these tools are used.
ClimateTrade is an expert in blockchain and has a team capable of working with the latest technologies. To learn more about blockchain technolgy, click here. By Diana Perez|October 4, 2021|Blog|Comments Off on Top 3 myths about blockchain
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