Since blockchain technology has drawn the curtains, there have been tons of improvements in the technology. The biggest one being cryptocurrency like Bitcoins, which has brought a new revolution in the financial world. However, there are many other cryptocurrencies like Ethereum, Litecoin, and Dash with distinctive features, but Bitcoins have set the bar way high.
While most blockchains only use nodes, masternode is a revolutionary feature in this industry. This second-tier network of servers has a real-time full copy of the blockchain all the time. Masternodes are known for better speed, faster transactions, effectiveness, and easy governance on the blockchain.
Blockchain has been known for its data integrity and reliability. Many experts believe that blockchain technology may soon replace traditional database systems. But, there are many pros and cons of blockchain too. Also, there are many misconceptions about this technology around. Here, we are list down the features of the expectations and reality in blockchain technology:
1. Global Decentralized Technology
Blockchain is assumed as a global decentralized supercomputer. Came into the limelight after the Bitcoin development phase, blockchain supported cryptocurrency trading on the internet. But how does it work? Blockchain verifies the transactions by performing operations. In one block, a certain number of transactions are recorded, and the block is linked to the latest block to keep the information up to date. Blocks carry transaction records. These blocks are connected to each other like a chain. It is not managed by any supercomputer or server. In fact, the distributed network of millions of computers worldwide managed it.
2. Anonymous and Transparent for Data Privacy
Blockchain supports cryptocurrency transactions. The transaction address is encrypted codes that are not linked with personal information. Transactions are anonymous and easily traceable. But it is not purely right! Transactions taking place between acquaintances, the history of the operations can be found with the owner’s address linking up. Between companies, trade histories are visible. Contacts and sale info are on display. One can look into the transactions. So, blockchain is not private and keeps your information private.
3. Not controlled by a central authority
No individual or company controls cryptocurrency. Also, it is not dependent on any system or server. It has become nearly impossible for an individual to mine Bitcoin as a specific machine is required to do the task. Miners build mining pools and carry the mining task. It is a misconception that a central authority controls the blockchain.
4. Legal Currencies will disappear
It is well-known that cryptocurrency does not exist in any tangible form. Cryptocurrency has tons of expectations, including direct money transfer, cheap transaction fees, no complications in transactions. People expect that with the boom of cryptocurrencies, legal notes will disappear. It is a sham and nothing else!
But, there is a big catch as the cash or liquid money will not go anywhere. Transactions in trading experience a time lag that doubts the permanent usability of cryptocurrencies. Also, as the number of cryptocurrency transactions increases, the time lag increases, which means currency transfer takes longer. It does not make it a practical currency for long-term usage.
5. High Scalability
Cryptocurrency working with blockchain concepts seem to be highly scalable. As the number of transactions increases as per user, the issues of scalability will generate. The capability of the system to handle a growing amount of users and to accommodate the users’ growth is the problem here. As the number of transactions exceeds and it causes an overflow of blockchain. Further, the time lag between payment sent and received increases.
Short-term or Long-term strategies?
Expectation- After seeing the projects increasing at an unbelievable pace in weeks, people got addicted to unsustainable strategies. And, according to them, people do not find it necessary to think that all the projects are different. They just put their plan under the “cryptocurrency” tab with the same expectations for each project.
Reality- Every project is different and has different goals & purposes; there is no need to put all your projects under the same tab and expecting the same growth for each project. In reality, many industries are out there that don’t work like this manner. A lot of businesses realized the importance of sustainable practices and hence profoundly care about the project goals and the tech required behind them. They focus on building a sustainable business and strengthen the brand with a long-term vision. These people would be best described as long-term traders.
And then there are some people who are in it just for the sake of money. In the world of blockchain technology, there are opportunities for people to make money with blockchain. As soon as people realize that blockchain meant to make money, they jump on it as their gold card. Without focusing much on project objectives, pressuring projects into exchange listings that only bring value to them — these people would best be described as short-term supporters.
Well, there is a place for both long term and short term strategies. There’s chaos when once one side massively outnumbers the other.
Effective Project Development is the Key
Expectation: As we all know, we humans rationalize our decision based on the trends that are happening around us. All of us. When an investment’s price rises over an extended period, then it becomes hard to tell what was impacting the bull market. And, it becomes tougher to believe that this could just be happening due to the frame of mind, not advancements of technology.
Reality: In reality, the only rational explanation is that the more you focus on your project, the better your app idea is, the better it is for people.
But this has a negative effect when the project was performing worse or doing something wrong. But, this was not the case.
Compared to other industries, Blockchain-related projects are more transparent. Always communicate and collaborate with users and supporters. This can enable them to see the development process on-hands.
Blockchain is serving many industries with its new and increasing demand in the tech world. It has not limited itself to just cryptocurrencies. But it is not going to solve every problem in the world. There are many pros and cons to the blockchain. That’s why blockchain must be implemented safely in the best possible way. There have been many assumptions made across the blockchain spectrum, and expectations are built upon those assumptions. But, all of them might come true. So, before getting into cryptocurrencies or taking any decision with blockchain tech, please get to know more about blockchain and its reality.