Blockchain technology has already achieved parity and acceptance in popular culture. So much so that there are movies about blockchains and cryptocurrencies. We can all agree that technology is gaining momentum faster than anyone could have ever imagined.
What we can’t agree on though are the various characteristics and features of the blockchain technology itself.
Blockchain means different things to different people.
So, we reached out to these experts to ask: What are the biggest lies told about blockchain technology?
Here is what they had to say.
Dave Nilsson, Founder and Director ConvertedClick
Blockchain is entirely public. This basic notion stems from the presence of Bitcoin, which is a global public blockchain. It’s important to understand that Bitcoin is just one type of blockchain. There are private and hybrid blockchains too. For example, banks and private institutions use a customized blockchain known as ‘permissioned blockchain’. It gives access only to certain identifiable participants, and this separates it from the public blockchain. So, the notion that blockchain is completely public is not really true.
Blockchain has the potential to power the global economy: According to Gartner’s report, although blockchains are an integral part of cryptocurrencies, the technology is largely overhyped. It mentions that the size of the blockchain is similar to the NASDAQ network. So, it offers nothing different from other financial networks. Moreover, it does not hold the potential to mark significant changes in the global economy.
Blockchains are invulnerable. It’s important to understand that blockchains operate on the encryption of the information that is exchanged between two parties. Big players like Bitcoin use the SHA-256 hash algorithm. Well, this works fine, but if the encryption is compromised, it can cause bigger problems than the whole existence of blockchain itself. Smaller blockchains are particularly more vulnerable, so there’s no sound basis for the fact that blockchains are completely secure.
Steven Pu, Founder, and CEO of Taraxa
Most of the time that bogeymen talks stem from one biggest misconception about blockchain technology – its alleged capability to guarantee the veracity of publicly available data. The truth is that blockchain cannot make any veracity guarantees for data that was not natively generated on-chain and not publicly available. Purported applications which ignore this problem run rampant today, often with additional layers of technologies to give the facade of correctness. Here are a few examples,
– Decentralized data market: where companies are incentivized with tokens to put their data up for sale — how do you know the data being bought is real?
– Privacy-preserving queries: a service where the number of high net worth individuals for a bank could be counted via a zero-knowledge range proof so you’d get a count without the bank giving you any of its customer’s information — how do you know the bank isn’t fabricating its entire customer database?
Alex Bulkin, Partner at A100x, a rolling venture fund committed to investing in companies that apply blockchain, AI, and other emerging technologies to promote environmental, social, and economic impact.
“Some people think the current generation of crypto assets have product-market fit, just because they show strong price action. The truth is there are barely any products in the crypto assets and DeFi space that are useful on their own merits, not just as a speculative roller-coaster. The cryptocurrency and decentralized finance space is a head-spinning procession of speculative bubbles (with the NFT and digital art craze being the latest), but the real long-term success will come from companies that are applying blockchain to traditional industries, build strong products while eschewing the crypto finance features entirely. It takes time to build useful products. What we lack is “patient capital”, venture investors not looking to flip tokens in the short term, but those that have a realistic perspective on what it takes to create real sustainable disruption. This is why my work at A100x is focused on blockchain applications outside of the crypto asset space, and this is why more impact investors should be looking at blockchain technology with an eye for usable solutions, as opposed to glorified gambling.”
Sanwar Sunny is an assistant professor of entrepreneurship and innovation at the University of Baltimore. He also is a co-founder and the CEO of Dynamhex, Inc., a company that provides complex energy consumption and carbon footprint data for corporate, utility, and government entities. He was also a Forbes 30 Under 30.
- Decentralization (the power of blockchain) is a myth: Decentralization has characterized much of the last decades of innovations in business models and software. Blockchain is a manifestation of that trend.
- Blockchain is just a way to scam people/conduct illicit business: There is no evidence that suggests, accounting for a proportion of volume, that blockchain-based transactions controlling for other factors have been used at higher rates than traditional currency. Also, most people confuse blockchain for cryptocurrency, which is only a very specific use case.
- Blockchain will change the world: Similar to the HTTPS protocol, blockchain’s future will be on the “application” layer, and not the “protocol” layer. It will be in the background changing the way we conduct business, and not be on the forefront/media frenzy as it is today due to bitcoin’s volatility. It will be so ubiquitous, we won’t know how we lived without it (like the internet).
- Blockchain is just a fad: Large corporations and influencers like KPMG and Citibank are already bullish on Blockchain, in ways that will have drastically changed the market demand for it.
Chris Wilmer – Associate Professor and Departmental Director of the Entrepreneurship University of Pittsburgh.
“One of the biggest lies in the blockchain space is that blocks should be kept small to ensure decentralization. The practical consequence has, in fact, the opposite effect as smaller blocks limit the number of users that can use a blockchain directly and forces them to instead use centralized intermediaries. This is what we see with Bitcoin (BTC) where the majority of users are only trading it on centralized currency exchanges. The motivations for this lie are unclear, but there are benefits to existing payment processors (banks and credit card companies) if cryptocurrencies like BTC are never actually used for small payments”.
Tally Greenberg, Head of Business Development at Allnodes
1. Blockchain and cryptocurrencies are the same thing
People often confuse cryptocurrencies with blockchain. They are believed to be the same thing. But they are not. Hypothetically speaking, if you suggest health care professionals to implement blockchain technology into their industry, they’ll understand it as if you’re asking them to receive payments for their services in cryptocurrencies.
After all, we hear about the Crypto market way more often than we hear about blockchain applications for various industries.
Even though blockchain and the first cryptocurrency – Bitcoin, were formed at the same time, they can be independent of one another in their utility. Blockchain is used in over 50 industries, health care included, and the technology is expanding to new sectors every day. That’s because blockchain tech can record and organize not only payment transactions but also every other record imaginable: patient’s health history, financial records, supply chain communications, land and title registries, accounting, and the list goes on.
Smart contracts are another way blockchain tech is utilized without cryptocurrencies. The concept of a smart contract holds great and unexpected wonders for blockchain applications in the real world. Used in sectors such as finance, government, real estate, and insurance to name a few, smart contracts are programmable codes that conclude agreements between parties without a third-party association.
In a way, you cannot manipulate data, and no blocks can be removed from a blockchain. The ideology of this statement is great. It means that blockchain technology, in its potential, can protect things like data breaches, identity theft, and file sharing, while protecting against fraud, laundering, and compliance violations. This implies that blockchain is a highly secure technology.
Marwan Forzley CEO, and Co-Founder of Veem
Myth 1. All blockchain is connected to cryptocurrency. At Veem, we use crypto to assist fast and secure transportation of payments, but not as a form of currency itself. Blockchain is the underlying platform that runs multiple use cases on top of which payments is an example of one of the prominent use cases that have seen scale in the industry.
Myth 2. There are security issues with Blockchain-related transactions. Blockchain transactions are very secure and must be verified with a public key. Should transaction data change, the signature from the transaction will become invalid. Therefore, the transaction wouldn’t make it to the chain. Bitcoin and other blockchain-related payments are in fact trackable and governments are working on ways to limit the anonymity of payers.
Myth 3. The use of Blockchain is bad for the environment due to its required high use of electricity. This could be further from the truth. In fact, Blockchain has shown it can aid global supply chains which would be much more helpful to the environment than the harm of its electricity costs. As Blockchain technology progresses, there will be a more clear understanding of its use, and companies, as well as individuals, will have different avenues to utilize the potential of the technology.
CEO & Founder @ LaptopUnboxed
One of the biggest lies about blockchain technology is that it’s completely public. However, there are four different ones, which include public, hybrid, private, and consortium. Therefore, some restrict access to certain people, and others are public.
Some people might not attempt creating their own blockchain, thinking it’s impossible. However, now anyone can “fork” bitcoin blockchain, which means you don’t need to be an experienced developer to do this.
Another misconception about blockchains is that they’re only meant for the financial industry. More people are using it to track and share educational and healthcare information because people are using blockchains for security reasons to help protect vulnerable information.
Akram Assaf, Co-Founder & Chief Technology Officer at Bayt
One of the biggest lies and myths about blockchain was that it was invented to be used for illegal purposes. This was a popular opinion back in the days, but it just doesn’t hold anymore. Today, most blockchain transactions are legitimate and publicly available while remaining anonymous. This doesn’t mean that blockchains and cryptos can’t be used for illegal things, but it’s simply not the main purpose of it.
Aaron Haynes, CEO of Loganix
Some people believe and fear that blockchain and its currencies could get shut down in case they get too big or too disrupting for today’s world. This would be pretty much impossible, and a decision like this would mean that the internet itself, as well as its backups, would have to be shut down as well. There will be no magical “turn off” button for blockchain, so you can rest assured that your investments are safe as long as they hold value on the market.
Twitter CEO Jack Dorsey says he would forever work to make bitcoin better.
Twitter CEO Jack Dorsey expressed his support for the leading cryptocurrency bitcoin on his microblogging platform Twitter, in response to a tweet by the Square chief financial officer, Amrita Ahuja. “Our bitcoin strategy hasn’t changed. We’re deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative,” Ms Ahuja wrote on Twitter. These comments came a few days after Elon Musk’s Tesla suspended bitcoin payments.
#bitcoin changes *everything*…for the better.
And we will forever work to make bitcoin better. https://t.co/wssrF2U0P0
— jack (@jack) May 14, 2021
Square’s Bitcoin asset is valued at $410m.
Square is a digital payments company founded by Twitter chief executive and Jim Kelvey and launched in 2020. The company valued at over $100 billion in 2020 is evaluating Bitcoin as an investment opportunity. Square has purchased a total of $220 million Bitcoin to date. Its Bitcoin asset is valued at $410m. Bitcoin was trading at $48,523.20 on Saturday and is down 13 percent over the past five days since Tesla announced to drop the cryptocurrency as a payment method. “Square is doing exactly this for bitcoin with @SqCrypto,” Jack Dorsey had tweeted last year.
Tesla suspends the bitcoin payment option citing environmental reasons.
Less than two months after Elon Musk had announced to accept the leading cryptocurrency bitcoin payments for Tesla vehicles, the company discontinued its support. Elon Musk announced that the reason they are suspending bitcoin payments is because of environmental concerns. Bitcoin mining uses specialized computers that use massive energy for the process of mining. However, Tesla would continue to retain bitcoin holdings that it acquired sometime in January this year. The leading electric car maker had purchased $1.5 billion worth of bitcoins earlier this year, sending the price of the leading cryptocurrency to new highs.
What is Party Parrot Finance?
Party Parrot Finance is a non-custodial lending market equipped with a Virtual Automated Market Maker (AMM).
From humble beginnings to today, decentralized finance (DeFi) has grown exponentially. Currently, billions of dollars of value are locked into numerous DeFi systems, which are being turned into different yield generating tokens, such as the Uniswap LP tokens, or the AAVE interest-bearing tokens.
For the most part, the values of LP tokens are locked in the many ecosystems that make up DeFi and are ultimately inaccessible to the crypto community. Unfortunately, the value locked in DeFi as LP tokens are unavailable to the larger blockchain community because their risks are non-transparent, and their units of account are unsuitable for human consumption.
Thankfully, The Party Parrot is fully equipped to deal with such inconvenience, and is supported by well-established networks such as Solana.
Although not much is known about the Party Parrot’s team, it is fair to imply that the Parrot ecosystem was designed and built to be scalable. The team behind the platform has shown great enthusiasm and expects the protocol to be among the top crypto solutions of its category within the market very soon.
Additionally, the team has expressed its vision of a world with full-scale blockchain adoption, where all crypto or blockchain-related solutions ought to possess the following attributes, ensuring that as the world’s technology grows, the blockchain’s throughput grows as well.
Here are some of its perks:
- Ability to process tens of thousands of trades per second and hundreds of thousands of orders per second
- Ability to process 10 billion social media interactions per day, which is around 100k per second
- Gas costs of less than $0.001
- Scaling with the world
- Ability to process all submissions on a human-reaction-time scale.
What is Party Parrot Finance?
Built on the Solana blockchain network, Party Parrot is a non-custodial lending market equipped with a Virtual Automated Market Maker (AMM). In general, the platform seeks to leverage locked LP tokens by making their value accessible through its highly efficient liquidity and lending network.
Additionally, The Parrot protocol is furnished with a margin trading algorithm designed to enable value locked within DeFi accessible. The protocol relies primarily on LP tokens used as collateral for all operations within its ecosystem.
The blockchain venture is an ambitious attempt to further the expansion of DeFi worldwide. The team behind its protocol aims to disrupt the worldwide DeFi ecosystem through its very first product, the stablecoin PAI, which will be backed by LP tokens as collaterals. In return, this will incentivize all LP token holders to trade with each other confidently.
Party Parrot is set out to create a margin trading product or virtual AMM, where the PAI token would be used as a tool to benefit the whole Parrot community.
Furthermore, through the Parrot lending market, LP token holders can enjoy the full potential of their tokens, as they are given the possibility to benefit from their locked value by borrowing against lender liquidity.
Overall, The Party Parrot financial venture is a for-profit project; so, all goods and services within the platform come with fees. But innovatively, the team behind the protocol will use the fees collected to purchase back the PRT token as protocol incentives.
Across the platform, the fees are collected from stability fees from the stablecoin PAI, as well as borrow interests on the PAI supply. Additionally, the blockchain ecosystem will be able to strive off borrow fees from the lending market, liquidation penalties, And trading fees for the vAMM.
The project is set to be following the roadmap below, ensuring a smooth implementation of all products:
- 2021 Q2 April-June: Stablecoin with LP collaterals.
- 2021 Q3 Solana DeFi Summer: Crypto lending with LP collaterals.
- 2021 Q4 -2022-Q1： Margin trading with vAMM, using PAI.
Also built on the Solana blockchain ecosystem, the PAI stablecoin the Protocol’s very first product. Once fully operational, the token will play an important role within the platform’s ecosystem. Currently, the token is available on devnet for testing purposes and open to all crypto enthusiasts.
The PAI stablecoin will primarily be used to bridge LP tokens to Solana. It will also enable the staking of ETH and BTC tokens on an L1 swap where holders can earn LP yields. PAI holders will be able to also mint PAI, with LP tokens as collaterals, and buy BTC or ETH using PAI under the Serum ecosystem.
Party Parrot Tokens (PRT and gPRT)
PRT is the Parrot protocol utility token, while gPRT is the platform’s governance token.
The PRT token is responsible for all operations and transactions within the platform and currently has a total supply of 1,000,000,000, where 35% is locked as protocol incentives, 17.5% control by the team, 10% as the reserve, and 20% saved for the platform’s ecosystem and partnerships.
As for the gPRT token, it is used as a tool to further long-term participation in governance within the system. gPRT tokens will be given to all individuals who lock up their PRT tokens, where the longer the lockup period, the greater the amount of gPRT tokens are minted for the supply locked.
For every gPRT in an individual possession, additional voting power and protocol incentives boost are granted. The lockup periods range from 1 to 4 years, guaranteeing various benefits depending on the number of years, which is as follow:
- 1 year: 1x (gPRT1)
- 2 years: 1.5x (gPRT2)
- 3 years: 2x (gPRT3)
- 4 years: 4x (gPRT4)
The Party Parrot protocol is a dynamic implementation and combination of already existing solutions powered by the blockchain. The growing DeFi ecosystem has revealed the need for such a solution within the market.
The blockchain solution not only empowers users and token holders but also enables them to benefit from all the services on the platform. Furthermore, through the PRT and gPRT tokens, users can potentially grow to become huge actors within the Parrot ecosystem, allowing them to take part in decisions and processes that affect the platform directly and indirectly.
Party Parrot is a unique protocol and is on pace to have an echoing impact within the blockchain ecosystem for years to come and eventually become a leader within the DeFi space.
Bitcoin (BTC) Transactions Worth Over $1 Million Hit All-Time High As BTC Price Struggles to Hold at $50,000
The world’s largest cryptocurrency Bitcoin (BTC) has been struggling under the $50,000 levels. After Tesla dropping BTC payments earlier this week, BTC registered more than a 15% price crash and is currently trading 3.64% down at $48,703 with a market cap of $911 billion.
On the other hand, Bitcoin (BTC) whale transactions have been ascending steeply. As per on-chain data provider Santiment, the Bitcoin whale transactions over $1 million are approaching another all-time high.
🐳 #Bitcoin is still dancing around the $50k psychological support, and traders are reacting to the potential of trading in the $40k’s once again this weekend. Our data indicates that the amount of whale transactions over $1m is staying historically high. https://t.co/gkaG8cFFHS pic.twitter.com/FLnHohNfag
— Santiment (@santimentfeed) May 15, 2021
CryptoQuant CEO Ki-Young Ju recently noted that long-term Bitcoin investors don’t need to worry since most of the institutional investors in the U.S. have purchased it above $50,000 levels. However, he noted that derivative traders have to be careful in the short term since the number of whale deposits on the exchange has been increasing.
If you’re a long-term $BTC investor, don’t worry. Your portfolio is the same as institutional investors in the States.
If you’re a derivative trader, be careful in the short term. (Relatively speaking) whales are depositing $BTC to exchanges.
— Ki Young Ju 주기영 (@ki_young_ju) May 14, 2021
Earlier today, Chinese crypto analyst Wu Blockchain noted that Bitcoin’s dominance in the overall crypto space has dropped to under 40% for the very first time in three years. This happens as altcoins continue to gain strength over the world’s largest crypto.
— Wu Blockchain (@WuBlockchain) May 15, 2021
A Look Into the Institutional Positions In Bitcoin (BTC)
Over the last few months, institutional buying in Bitcoin has continued mostly at levels around $55,000. As Wu Blockchain notes institutions that have purchased Bitcoin after March are currently under losses with the recent BTC price crash. However, one Chinese firm Meitu has managed to offset these losses by purchasing a good quantity in Ethereum (ETH).
In March 2021, Meitu announced the purchase of an additional 16,000 $ETH for $28.4 million and 386 $BTC for $21.6 million. This makes Meitu the first public listed firm to invest heavily in Ethereum (ETH). Wu Blockchain writes:
“Institutions that bought Bitcoin after March have suffered losses due to the recent sharp drop. However, the Chinese listed company Meitu took out more funds to invest in Ethereum in April, so it gained 3x the income, offsetting the losses caused by Bitcoin”.
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Billionaire Druckenmiller says ledger-based system could replace USD worldwide
Justin Sun Offers $50M Dogecoin For TRX And BTT SpaceX Satellite Launch
Bitcoin Vault inks major deal with ESE to co-produce Gaming & Esports Talent Show in five countries
XRP Lawsuit ramifications: Is the SEC hurting the same community it vows to protect?
Raze Network Kicks Off Testnet Phase With UI Community Voting
Sigmax.io introduces an innovative trading bot that simplifies arbitrage trading
First Spot: Coinbase’s App Surpassed TikTok, Instagram, and Facebook on iOS in the US
Dfinity’s ICP token sees violent first day of trade on major exchanges
Binance Lists SHIB, Will It Become The Next DOGE?
The challenges with designing a CBDC, explained
Data Agnostic Oracle Network ORAO Chooses TRON’s Blockchain Over Ethereum’s
dotmoovs Raises $840,000 From Strategic Investors and Partners
How did Internet Computer (ICP) become a top-10 cryptocurrency overnight?
Casper Network’s CSPR Spot Trading Now Open on OKEx
AI-powered crypto trading app BlockBank to use API3’s data feeds
Block.one and partners raise $10B to launch EOS-based crypto exchange: Bullish Global
When dollars meet the hype: The biggest NFT hits from celebrities
PARSIQ Integrated Into Polkadot For Smart Triggers Across the Relay Chain
Uniswap flips Bitcoin on daily revenue… and it’s more impressive than you think
Blockchain1 week ago
Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program
Blockchain1 week ago
Crypto Market Cap Added $300B in 7 Days as Altcoins Explode: The Weekly Recap
Blockchain4 days ago
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Blockchain7 days ago
Ray Dalio’s Bridgewater CFO leaves to work on Bitcoin full-time
Blockchain6 days ago
Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder
Blockchain7 days ago
CFO of World’s Largest Hedge Fund Joins Institutional Bitcoin Firm NYDIG
Blockchain7 days ago
Ethereum (ETH) Hits $3800 ATH As Coinbase Premium Shoots With Institutional Interest
Blockchain6 days ago
Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members