Blockchain Technology: Everything You Need To Know About | Top Lists
Many of us think that Bitcoin and Blockchain Technology are the same, but it is not so. In this article of My English Lobby, we will discuss 15 Misconceptions & FAQs related to Blockchain Technology.
Living in the age of technology is such a generation which is changing day by day. With the changing times, our technology is also constantly changing and in such a situation, Blockchain technology is a unique part of this computing evolution. We can confidently say that Blockchain Technology is changing the world.
What is Blockchain Technology?
Blockchain works on a concept which we can call Ledger Technology. It is a type of open ledger that stores the data of any type of transaction transparently & does not require any intermediaries.
It is believed that its value is 10 times more than the Internet. Specifically, in blockchain technology, a request for a user’s transaction is transmitted to a network. After the request is validated, this transaction is tied to a block that is linked to the block containing the old transaction. Transaction records are kept with great care. In case of any discrepancy, the request is rejected and the transaction is stopped.
Do You Know?
The first crypto block concept was invented in 1991 by two scientists. Their name was ‘Stuart Haber’ and ‘W. Scott Stornetta’.
Ledger technology works in several ways in blockchain technology, it also maintains the transaction records of Bitcoin. In recent years, we have been seeing that the market of Blockchain has increased to a great extent and from this, it can also be estimated that in the coming time this technology will destroy many national and international level industries.
By the way, you should never make this mistake in understanding that Blockchain and Bitcoin are the same things. As a matter of fact, Bitcoin uses Blockchain technology to do its work effectively. Thus, these two things are different.
So, this was a little information about Blockchain. So let’s take a look at 15 FAQs related to blockchain technology…
#1 Is the Inventor of ‘Bitcoin’ and ‘Blockchain’ are the same?
There is a common misconception that the inventor of bitcoin and the blockchain is the same person, although this is yet to be confirmed. Many experts say that Santoshi Nakamoto is the man who invented both bitcoin and the blockchain.
But we want to point out that the idea of blockchain technology was first introduced in 1991 by Stuart Haber and W Scott Stornetta. Both these scientists presented an easy computer solution to prevent tampering with digital documents.
Overall, it can be said so far that the identity of the real inventor of bitcoin and blockchain is still a secret.
#2 Is Blockchain used to generate digital IDs?
Yes, this is absolutely right. The reason for this is that there are many countries in the world where it is very difficult to make an official identity. It is nothing less than a challenge. The reason for this is that more and more population of the world lives in poverty and some people do not have access to facilities like mobile or internet.
So in such a situation, those people have to face a lot of difficulties in making their official identity. According to a survey, it was found that about 1.2 billion people in the world are unable to make their identity.
Digital ID is one such option that will provide online convenience to the people and many benefits to them. When people will have a digital identity of their own then they will not have to face any kind of trouble in future and they will be able to open their account in the bank or any other government office.
Blockchain simplifies this to a great extent. We can undoubtedly say that Blockchain is changing the world.
#3 Is Luxury Brands Hates Blockchain?
No, this is absolutely wrong, rather it is the opposite. In the times to come, Blockchain technology will change the way luxury brands do business. I can say this with certainty. With its help, you will be able to give a digital identity to your things and will also be able to avoid any kind of fraud.
Blockchain has been able to stop the way the fast-growing counterfeit industries operate. With the help of this, the risk of online transactions will also be reduced.
Recently, LVMH (Moët Hennessy Louis Vuitton) developed the project named AURA. The main reason to start this project was that Blockchain fully validates their luxury and fashion goods or not.
For this, he has partnered with ConsenSys and Microsoft. With its help, they use Ethereum blockchain technology so that they can trace or track services.
Through this, the customer will be able to track the history and find out everything he wants. The transparency of the product will be in front of the consumer, which will increase his trust in the product.
The world’s famous diamond company De Beers also applies the same principle to its product. It uses blockchain to identify the purity of the diamond. With its help, the customer will be able to keep track of all the history from the diamond mine to the shop.
So from this, we can say that Blockchain is attracting luxury brands towards itself.
#4 Is Blockchain the best bookkeeper of all the bookkeepers ever created?
The most beautiful thing about Blockchain is that it maintains100% transparency. With its help, we come to paperless technology, yet all the data remains completely secure.
So obviously we can say that Blockchain is the best bookkeeper. As we mentioned in the beginning, Blockchain works on a technology that keeps records of your transactions and stops your transaction requests in case of any mistake.
So from this, you can understand that how reliable and accurate it is, which saves you from any kind of fraud.
#5 About 10% of the population uses Blockchain?
No, it is not like that at all. Rather, only 1% of the world’s population uses blockchain. Many people do not even know what is blockchain technology.
By the way, do not remember this figure, it may be that this figure will touch the sky in the coming future. Blockchain is so secure that in the coming times, whatever the sector may be, Blockchain will take its place.
Just imagine with a single click, you can get complete knowledge of doctors, offices, your property, business, education sector etc. Not only this, but you can also track its history completely.
Blockchain will eliminate the middleman. It will also keep all your assets invested and related transactions 100% transparent i.e. there will be no fraud of any kind. It will also help eliminate cybercrime. So tell me what do you want now?
#6 Can Blockchain Increase Corruption?
No. It’s not like that. As we know that in today’s time there will be hardly any government where there will be no corruption. But one thing is certain that in the future, the word corruption may only be found in history when it comes to blockchain technology.
As mentioned in the beginning that if this technology shows 100% transparency, then the question of corruption does not arise anywhere. Blockchain provides a valid ledger for all transactions.
When it comes to the Government, blockchain technology will make the government accountable for the expenses related to them. Undoubtedly, it will become mandatory to tell where and in what form the money spent by them and no government will be able to hide it.
#7 Can Blockchain be both Public and Private?
No, there is no clarification about it yet, Blockchain can be either private or public. If we talk about public blockchain like bitcoin it does not have any kind of restriction. Anyone who is a part of that community can use it.
But, if we talk about private blockchain, it is difficult to say at the moment. This is because the private blockchain itself is related to a public blockchain. Public blockchain validation takes a long time.
#8 Will Blockchain Boost the Internet of Things (IoT) Market?
Yes, of course! The Internet of Things, as we know IoT, refers to all the devices that run on or are connected to the Internet. If we count them, they will be in the number of billions. From our home appliances to aeroplanes, all those things come in IoT.
Blockchain becomes a ledger by which users are connected to IoT so that they can communicate with each other very easily. Be it the manufacturing industry or security, smart building or energy industry, both Blockchain and IoT are thus capable of shifting digitally.
According to a report, by 2022 this industry will be able to reach 80 billion dollars.
#9 Will DAC (Decentralized Autonomous Companies) would be norms due to Blockchain?
Yes. We already know that Blockchain is changing the way companies operate. DACs (Decentralized Autonomous Organisations) will become an absolute norm. A company named Digix.global is the best example of this. These rules apply to any company (DAC) digitally the same.
The rules are pre-programmed, according to which, what is to be done and what is not to be determined in the system. Some of these are hardcoded which cannot be changed. For example, no one can overpay themselves without alerting the system.
From this, we understand enough that it will change the way the company operate.
#10 Is the price of bitcoin will exceed 100K in the coming time?
After reading this, we know that you must have been shocked, but it is true. In the coming time, not only bitcoin, the price of many other cryptocurrencies will increase. Don’t be surprised, we are talking per unit price here.
We know what you must be thinking now. Will you be able to buy bitcoin even though it is priced so high? So let us tell you.
In fact, bitcoin can be divided into one hundred million pieces. Yes! You read it right. This means that you can own a tiny fraction of bitcoin with a small investment. Which you can sell, pay for or send anywhere, anytime. But despite all this, you need to know all about it before investing.
#11 Will Blockchain Affect the Food Supply-Chain Industries too?
Yes, as we know that nowadays bad food products are spread everywhere in the market. This results in huge losses for the big companies. But now big companies like Nestle, Walmart have decided to include blockchain technology in their food supply chain. They are doing this so that They can track down the bad food products.
#12 Will Blockchain be able to control electoral fraud to a great extent?
We all know how there is fraud in elections. This is the condition of elections in almost all countries whether it is India or America. Be it allegations of voter fraud or allegations related to counting votes, these are still going on. In the beginning, there is something else, but when the result comes then everything changes.
In this way, blockchain will create a system in elections that will make everything transparent from the counting of votes to the results of the elections. There will be no doubt of any kind of error as the chances of making a mistake with the blockchain are very less.
#13 Is there any Blockchain nodes orbiting the earth?
Yes. In late 2019, SpaceChain launched a crypto wallet on the Falcon 9 rocket in Earth’s stratosphere. This 1 kg node was the first active node in the world to be sent to the International Space Station.
The basic reason for sending this was to make any country free from hacking. Currently, the space station is working on decentralized blockchain infrastructure in the Earth’s stratosphere.
Zee Zheng, CEO and co-founder of SpaceChain, has said in an interview that we see that many crypto exchanges have been hacked. Millions of dollars are transferred within 1 to 2 minutes. By using this channel we will eliminate hacking as well as be able to stop the suspects.
#14 Will the money on Mars be on the blockchain rather than on paper?
Just imagine, if you were taken to Mars, would you take your wallet there? And even if you take it, where will you spend the money? An interesting question isn’t it?
Let us give you the answer to this question. While living on Mars, you will have some difficulty in keeping the wallet with you and spending it. So the best option for this is Blockchain.
Mars is far away. In this case, the transaction process can take a lot of time. This process of the transaction can be easily solved only by Blockchain. According to some reports, “Marscoin” is being made for Mars, which can be transacted through bitcoin. Now, it must be clear to you that the planet Mars will be dominated by Blockchain.
#15 Will Developed Countries accept Bitcoin & other Cryptocurrencies for paying taxes?
Yes. Developed countries like America, Switzerland, Canada, Estonia etc. will use Blockchain technology in the coming time to pay their taxes or anything else. Some of these countries are also using this technology.
By 2022, almost all the countries of the world will start adopting this technology and will start improving the convenience of their transactions. Not only this, countries like the USA, UK, Saudi Arabia, Japan, China, Korea are also preparing to launch their official cryptocurrencies in the market.
It has become clear from the above facts that in the coming time Blockchain technology will be effectively implemented all over the world. Blockchain will act as a link from all types of industries to Mars. We hope that now you will not have any kind of misconception in your mind and if there are then you can ask us in the comment section.
Why do you think blockchain technology is needed more? And how long will it last?