Apr 5, 2023
The Truth Behind Blockchain’s Biggest Misconceptions
Enterprise-level blockchain adoption shows no signs of slowing down.
Already, enterprise giants like global technology company Alphabet Inc. (Google’s parent organization), asset management group Apollo, and life science organization Genentech have implemented blockchain to launch product lines, purchase mortgages, and fight counterfeit medicines. And this is just the start. Even amid economic uncertainty, the majority (81%) of business decision-makers say they expect technology budgets to increase this year. With that, 87% say they are likely to invest in a blockchain solution in the coming months.
Blockchain is the most effective form of copy protection and digital certification we’ve ever seen. These are massive issues that nearly every business worldwide has to contend with—it’s a major reason why blockchain has emerged as an essential tool for securing business transactions, and a worthwhile investment for organizations that adopt. But despite growing adoption, myths continue to surround blockchain. Business leaders have been served misinformation about how it functions, who it’s for, and what it can offer. Claims that paint blockchain as a cure-all solution or lump it in with web3 hype not only hinder further usage, but also limit total optimization.
What are some of the most significant misconceptions about blockchain technology? Let’s dive in and debunk.
MYTH #1: Blockchain and crypto are the same thing
When blockchain was introduced 15 years ago, it enabled the verifiable transfer of digital assets—specifically cryptocurrency. As a result, many professionals were left with the impression that blockchain and crypto are synonymous. Even all these years later, the misnomer stands: 54% of the global decision-makers we surveyed for Casper Labs’ inaugural State of Enterprise Blockchain report say they see blockchain and crypto as interchangeable terms.
Blockchain is a secure, digital database that is shared across a public, private or hybrid network. Thanks to its distributed nature, blockchain has built-in resistance against data security threats. And because all actions are recorded, it promotes transparency and accountability across workflows. It also enables businesses to have more ownership over their data and assets: by using smart contracts, organizations can automate permissions and restrictions to transactions.
With these combined capabilities, blockchain has the power to fundamentally change business operations by bringing visibility, trust, and control to transactions. Yes, crypto is an application of blockchain technology, but it’s just one of many. Blockchain’s broader, transformational impact shouldn’t be overlooked.
MYTH #2: No business is using blockchain for production workloads
Decision-makers naturally understand that blockchain can be an impactful tool for financial transactions and tracking—whether that means buying and selling digital art, or trading cryptocurrency. Its other functionalities, meanwhile, tend to fly under the radar. In fact, nearly one-fourth of our own survey respondents say that while they understand blockchain technology, they haven’t found a viable use-case for their business.
For Fortune 500 companies including McDonald’s, Disney, Apple, Shell and many others, blockchain can support a variety of operations beyond financial transactions. Think of any asset that requires authentication: an auto lease, a business contract, a coupon code, or even a credential on a resume. Blockchain can provide efficient and transparent proof of ownership across every example. This core capability is exactly what makes blockchain a powerful resource across industries, from supply chain and manufacturing, government services, media and entertainment, just to name a few.
MYTH #3: Everything on blockchain is immutable
Blockchain is often referred to as an immutable ledger, since all contents are all related or linked together. Each record represents a unique block of data—hence “blockchain”—with its own cryptographic hash, making it highly secure.
This is a major pro on one hand. Data stored on blockchain is protected better than it would be in a regular database. But on the other hand, businesses are constantly evolving their processes. New regulations emerge and have an impact on operations as workflows or permissions may change.
That’s why Casper Labs has built a blockchain with business evolution in mind. With features like upgradable smart contracts, Casper users can benefit from immutability across existing data, with the option to edit workflows for the future.
MYTH #4: Blockchain deployments require highly specialized blockchain developers
Lastly, limited developer knowledge is a leading hurdle to blockchain adoption. Many business leaders assume that in order to successfully onboard a blockchain solution, teams require specific industry expertise.
However, managed services offerings are available with select solutions to make implementation a painless experience. With hands-on support and guidance, organizations can benefit from the value that blockchain brings to the business sooner, as well as ensure they’re maximizing its utility.
While blockchain’s permeance in modern business speaks for its ability to make a positive impact, it is critical that business leaders learn more about how it functions and who it can serve. A deeper blockchain education is the difference between testing the waters and maximizing its fullest potential.
If you’re just getting started on your blockchain journey, I invite you to download Casper Labs’ new ebook, Everything You Ever Wanted to Know About Blockchain (But Were Afraid to Ask). Additionally, you can follow the Casper Labs blog to learn more about the latest trends around business adoption of blockchain technology.
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