7 misunderstandings about the block chain and bitcoin

Over the past decade, the block chain and bitcoin have been complementary, mutual, and create a new era of technology after internet. It can be said that the blockchain created bitcoin bitcoin, but also the achievements of the block chain.

But in this decade, the outside world for the block chain and encryption currency misunderstanding has never been interrupted. In this article, we choose 7 typical cognitive errors, for you to answer:

Misunderstanding 1: = fried bitcoin blockchain

It can be said that most people first misunderstanding of the blockchain!

The explosive boom in 2017 bitcoin, allows investors to see such a new blue ocean, have admitted fishing gold. This is caused by the people first impression of the block chain — block chain, only the currency speculation speculation.

However, an application scenario is bitcoin block chain technology, like Alipay is a product of the Internet Financial. Trading in the digital currency market is now not only bitcoin and Ethernet square, and other digital currency, with the traditional stock market.

In addition, BATJ and other domestic and foreign Internet giants are committed to the application of block chain technology, has landed the product traceability, electronic evidence, public welfare and other aspects, but also to the community gradually began to bring the good block chain found.

Misunderstanding 2: block chain data is absolutely safe

This is one of the most common mistakes. Many people including some steeped circle for a long time people coin coin, that block chain data is stored by the encryption method, is “safe”, so it can be a bank account, password and so on some important to block the chain store.

But the fact is, “absolute safety”, there is No.

In the chain, the chain blocks of data are publicly visible for each node or individual, which means that, as long as in the chain, anyone can view the data on the chain store!

The blockchain said “data security”, but said the data can not be tampered with, “anyone who does not have the right to alter data, only this. The block chain is not suitable for sensitive personal information storage.

Misunderstanding 3: block chain suitable for storing large amounts of data

The distributed characteristics of the blockchain, means that each node block chain network has a complete copy of the blockchain. If the block chain used to store large files such as video, so it will be very difficult to deal with the node, which leads to inefficiency.

Therefore, the face of this situation, the general will be large data files stored in other places, and then the address of the data stored in the block chain.

Error 4: intelligent real contract contract is stored in the block chain.

In fact, the intelligent contract with the real world is completely Never mind of the contract. Smart contracts can be stored in the block chain, has been completed and computer program can be executed.

Intelligent contract is written in a programming language, such as Ethernet square with Solidity through Ethernet virtual machine code to run the workshop environment, intelligent contracts can be run in the etheric Fang block chain, achieve function expansion.

Known as the 1 encryption currency bitcoin is simple, without the concept of smart contracts, nature also have no way to create smart contracts in the bitcoin chain, but also for the development of DAPP application.

Therefore, the contract is in accordance with the intelligent computer program can automatically execute the preset conditions, but only in the area within the chain, while the default conditions must also be to block chain technology can verify the.

Myth 5: the nature of bitcoin is the same with coins

Bitcoin is the first on the block chain system Token, it does not exist in the real world entity. In the world, it only exists as a trading record.

In short, only one coin utility as a simple store of value. While Token can store complex values, such as property, utility, income and alternative, the nature is not the same.

If you want to buy, send and receive bitcoins, interact with bitcoin blockchain, then you only need a bitcoin wallet, the wallet is just an address, a key, interactive bitcoin is a valid transaction records, allows nodes to verify.

For example, a miner is force mining, get 12.5 bitcoin reward, the 12.5 bitcoin is the only effective record into the miner’s purse, and not a physical representation.

Misunderstanding 6: bitcoin can not become the mainstream currency, because the government

The biggest problem of bitcoin is its inherent scalability problems.

In the design of the Cong bitcoin block chain, a block about 10 minutes, and each block size limit is within 1MB, which resulted in the bitcoin this chain currently only 7 transactions per second! This makes bitcoin is very suitable for use in the remittance does not require immediate confirmation of the transaction.

As the encryption currency 2 Ethernet square, now only up to 20 times / sec TPS. In contrast, in 2017 11 Alipay completed the highest double handle 256 thousand transactions per second, the processing speed of visa and paypal are also far more than the bitcoin and etheric fang.

Therefore, bitcoin is currently unable to become the main cause of the major currencies, not because of government, regulatory and regulatory restrictions, but its inherent scalability problem, it can not really let the public in general between the trading and distribution of real-time and convenient.

Misunderstanding 7: block can be applied to the whole industry chain

Block chain technology, is understood as the fourth industrial revolution, some people regard him as the iterative development of the internet. Anyway, it is a big progress of technology development, condensed in this technical value has yet to be explored.

Although the blockchain technology is a new progress, but not all industries need the blockchain. Short term block chain could not be used to all areas of life. Now do a block chain project cost is not low, and this talent, and is quite scarce, the market economy, they will only return to better project.

The characteristics of the “Chinese coinless blockchain, will gradually be monopolized by the giant BATJ, small block chain enterprises will become increasingly difficult to fall.

The invention of technology, technology will contribute to human. There are many reasons that block chain will become more and more important infrastructure used in many industries, far beyond the field of encryption of monetary and financial services.

Block chain can not solve all the problems of social trust, whether it can be completely “to the center” is also a question mark, but constantly misunderstood, constantly promote the cognition, block chain has become more and more smooth, more and more adapt to the times.

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