Blockchain is a useful technology that has shown many remarkable uses. But many people concentrate only on the upsides of the technology, forgetting to take a sober view of things. Let’s take a look at some of the myths prevalent in the audience and what it actually stands for.
- The blockchain is a giant, distributed computer.
You might be under the impression that blockchain is some sort of distributed computer, performing distributed computations if you haven’t looked into the principles of blockchain operation but only heard opinions about this technology. But, the piece of information is incorrect. All of the nodes that maintain the blockchain do exactly the same thing – verify the same transactions in accordance with the same rules and perform identical operations, record the same thing into a blockchain, and store the entire history for all time.
- The blockchain is everlasting.
Within just two years of launch and six months of active use, Ethereum network has accumulated 200GB of history data in the blockchain. Similarly, Bitcoin record has already become as large as 100GB. As the growth of HDD capacity lags behind, blockchain’s life span is limited by a decade under current circumstances.
- Conventional money will soon disappear.
For the millions of users worldwide, the Bitcoin network is capable of processing a maximum of seven transactions per second. Bitcoin-blockchain transactions are recorded only once every 10 minutes. Since the records regularly roll back to increase payments security, it is standard practice to wait 50 minutes more after each new record appears. This means buying a snack using bitcoin will require you to stand in the queue for an hour. This is the case when Bitcoin is used by just one in every thousand people on the planet.