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Top 3 blockchain myths, Blockchain technology was introduced for the first time in 2009, with the release of its first application, the encrypted digital currency Bitcoin. Blockchain technology is a decentralized digital system that enables many different parties to exchange trust among themselves, share digital records and reach consensus without The need for intermediaries. The technology consists of a series of unalterable encrypted data records, each with a timestamp of the times it was added, and operated by a distributed set of computers that are not under the control of a particular entity.

Top 3 blockchain myths

The importance of blockchain technology:

With the advantage of its design, this technology resists attempts to manipulate and modify data, which gives it clear security advantages, and because of the association of the beginning of technology with digital currencies, the belief has spread that it is based on digital currencies only and that it is useless in other fields, but the reality is replete with any evidence of the benefits of Blockchain technology in Securing data in various sectors, regulating the payment of taxes and fees and sharing electricity among others.

What are the most prominent misconceptions about the blockchain that prevents benefiting from it?

In addition to the prevailing belief that the uses of the blockchain are based on cryptocurrency only, there are many other beliefs that prevent many companies and sectors in different fields from benefiting from the value of this technology and the opportunities to benefit from it. Here are three misconceptions about “Blockchain” and how to address it :

First: Blockchain for digital currencies only

The technology is often presented as a synonym for the most famous cryptocurrencies (Bitcoin) and encrypted (Ethereum), and thus there is no reason to use it in various fields and benefit from it in companies and public institutions. In fact, the “Blockchain” includes many public and private versions, and its applications go beyond cryptocurrencies.

In addition to the public version that does not need permission from the “Blockchain, on which cryptocurrencies depend, there are other versions that need (public permission), and this means that anyone who obtains pre-defined criteria can download the protocol and verify the validity of transactions, and the joining parties will need To the Blockchain network, in this case, it is necessary to obtain prior authorization, and versions that require private permission may be more suitable for organizations; due to its compliance with privacy considerations.

Where those who want to participate in the network are pre-assigned and their identities verified, and this type is used in unions that require cooperation between different institutions, for example, a company can create a private “Blockchain” network to accomplish the required commercial cooperation between its suppliers, partners, and customers regarding Purchase and delivery of goods. Then suppliers and partners working with other companies will not be able to join their own network.

Second: Blockchain is just an emerging technology without significant benefits

Some organizations treat technology as just a new, popular and impressive technology, as they adopt it as a means to keep pace with technical development, without real awareness of its benefits or prior and careful planning for its employees, and such a method leads to wasting money and effort in useless investments and a real failure. In general, the objectives of the institutions should govern the choice of “Blockchain” or other technologies above all.

Conditions necessary for the success of blockchain applications

There are four conditions for the success of public and private technology applications, and they depend on the purpose of their use:

  • Provide a new experience to the target audience of the service.
  • Satisfying absent or incomplete needs.
  • Completely or partially abolish the role of mediators.
  • Reducing mistrust by achieving it digitally and maintaining the origin of activities or resources.

These four conditions can solve many of the problems facing the current interactions, whether they are between companies and each other, between companies and consumers, between one machine and another, between a peer-to-peer machine, or between peer to peer, and the trend is common to exclude systems Private blockchains are simply databases that rely on old technologies. But public blockchains also use well-known programming languages ​​and technologies. Their combination allowed solving the problem of double arithmetic in financial applications by creating “Bitcoin” after continuous efforts by computer scientists to treat it since the early eighties.

It is important to use private (Blockchain) networks to solve difficult problems in business after other technologies are difficult to solve or provide substandard solutions, and without this, “Blockchain” initiatives will fail to distract from exploring its benefits and use.

Third: Using the “Blockchain” requires waiting for the initiatives of others

There are many companies that believe that they cannot take a step forward to enable blockchain technology and that the application of this technology is related to the formation of a broad consortium, to include institutions working in a field, and this is what prompts them to wait for other parties to take the initiative, in order to establish the network and put The rules of practice, and only then will you be able to join that union and benefit from the Blockchain.

In fact, many practical experiences have proven that this opinion is incorrect. Companies in various sectors can launch private or very small “Blockchain” networks, and benefit from them without waiting for others, and these networks contribute a lot to filling any trust gaps, which may occur when interacting between companies, suppliers, partners, and consumers who have common goals. The value of these networks is when transactions involve old and newer systems that create isolated islands of information that cannot be linked together, and organizations are forced to dedicate a lot of time and effort to reconcile them.

Benefits of Enabling Blockchain Networks in Enterprises

Networks of this technology can cure data isolation, and achieve significant collaborative benefits, which has positive effects on companies, and in fact, many organizations have benefited from these networks in accomplishing tasks such as reducing purchase order failures in electronic systems for data exchange and reducing the expected time for delivery Customer orders that require the cooperation of different teams within the same organization with fulfillment partners, warehousing partners, and others.

Its private networks have also proven valuable in tracking the movement of highly accurate tools and sharing them between OEMs and multiple suppliers, managing non-digital logistics equipment between different parties, protecting personally identifiable information and its exchange in multilateral systems, and in At the present time, the opportunity is available for various institutions to build “Blockchain” networks and use them to drive digital transformation efforts at the operational level and digital operations, provided that “Blockchain” is part of organized plans that align with the goals of each institution.