False impression: All blockchains eat excessive quantities of power
This originates on account of many public blockchain protocols, amongst them, Bitcoin, are inflicting excessive power consumption due to utilizing PoW (Proof of Work) as their consensus algorithm. Nonetheless, there are options that require negligible quantities of power which might even be much less susceptible to sure assault vectors in contrast with PoW.
Options to PoW have been used to safe (public) networks for over 5 years with no main points. What’s vital to find out about community consensus is that there are numerous options (PoS, BFT, …) obtainable that each one have each advantages and downsides. Relying on the targets, there’ll possible be an answer that doesn’t require excessive power consumption, whereas nonetheless offering a strong outcome.
Blockchain Misunderstanding: Transaction charges
We’ve all heard some issues about transaction charges in public blockchains that are often a solution to incentivize sustaining a strong community. These charges are often distributed to whoever is operating a node, with the purpose of motivating extra individuals to run nodes to attain a bigger and extra decentralized community. Though some public blockchains have fairly substantial charges, others have low, nearly negligible charges.
One other concern might be the need for end-users to have some cryptocurrency to pay for the charges each time they carry out transactions. There are numerous methods to beat this inconvenience: whereas some protocols have built-in options, it could not even be essential to have a charge construction in permissioned networks.
Misinterpretation: Public vs Personal/permissioned
This subject usually causes (emotional) discussions. There are teams which have an aversion to ‘centralized’ permissioned blockchain options, even going so far as stating the one true blockchain use case is cryptocurrencies.
At FullBlock Options, we’re of the opinion it’s as much as the companies to resolve which answer works finest. If a enterprise can get worth from operating a personal community that clearly has some centralization, then who’re we to guage? Then again, we’re keen about blockchain options which carry worth to the end-user the place it’s usually useful to intention for a extra decentralized method.
It’s not unlikely to be confronted with challenges when aiming for decentralization, although with some creativity, it’s often potential to provide you with a great compromise. Typically, this implies a mix of public and permissioned chains which we name “hybrid chain options”. Typically it could be helpful to develop the applying(s) in such a manner that it permits migrating elements and even the whole utility from the permissioned to the general public community, or vice versa.
Delusion: Utilizing blockchain requires utilizing sensible contracts
“Good contracts” and “blockchain” are phrases which might be usually used interchangeably, but they’re two fully various things.
It’s completely potential to make use of blockchain with out sensible contracts, and in lots of instances, the significance of sensible contracts is extraordinarily overrated. This subject can be mentioned in additional depth in one among our future articles.
At FullBlock Options, we consider introducing complexity can solely be justified when there’s a good motive to take action and no manner round it. Good contracts might be helpful, however they will introduce pointless complexity, which will increase each expense and potential failures, so it’s vital to take a crucial have a look at the worth they actually carry when creating purposes.
Mistaken Perception: Blockchain is a stand-alone answer
Though for some easy use instances blockchain may very well be used as a stand-alone answer, for many purposes, blockchain is a part of a know-how stack, although even with dApps, we regularly depend on different applied sciences which might be used along side blockchain.
Fallacy: It’s not possible to combine blockchain into legacy techniques
Whereas many legacy techniques are extremely entangled/intertwined which can trigger issues or make cost-effective blockchain integration difficult, it’s in all probability not a motive to dismiss the know-how altogether. With correct preparation and planning, it’s possible that elements of the legacy stack might be phased out and changed step by step with blockchain parts.
This false impression is a typical results of poor understanding of what enterprise processes can profit from blockchain implementation, and the place legacy know-how stays a superior worth proposition.
It ought to be talked about that when legacy techniques appear to be an insurmountable barrier – even when there’s a transparent case for utilizing blockchain – it could be time to reassess the long run technique of the corporate. An vital issue which ought to be taken into consideration at the moment is how blockchain could also be driving disruption in your trade. It might very properly be the case that startups in your trade are utilizing blockchain in a manner that might make your corporation out of date.
Misjudgment: Protocol ‘X’ is the one appropriate selection on your purposes
When assessing which know-how is the appropriate one on your use case, you’ll possible be pressured to make some compromises.
There are numerous totally different flavours of blockchain protocols, and consequently, it’s extremely possible your targets might be achieved in some ways, and most frequently by a couple of protocol.
One essential piece of recommendation we wish to give right here is to make sure bias is just not a driving consider your know-how selections.
About FullBlock Options
FullBlock is a go-to-point for blockchain protocols, initiatives and corporations concerned with assessing, constructing or rising their challenge by offering blockchain insider know-how, from working years straight for blockchain protocols, with blockchain initiatives and corporations.
Earlier Article about Full Block Options
FullBlock Options: The previous NEM Europe Group establishes blockchain consultancy agency