5 Misconceptions of Blockchain Technology
Digital Asset Group
Mazars Digital Asset Group
Andre Sterley | Digital Asset Group Leader | Mazars USA LLP
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Video’s Key Takeaways
1. Distributed Ledger Technology (DLT) is not the same as Blockchain
- Blockchain is actually a subcategory of DLT
- Not all DLTs are blockchains or use a chain of blocks – e.g. R3’s Corda DLT does not group transactions into blocks and all transactions are not necessarily broadcasted to all nodes on the network.
- Distributed Databases actually existed before “blockchain” became in vogue.
2. Blockchains are not homogenous
- It may be misleading to think that if I “add a blockchain” that all entries are automatically going to be immutable, the network decentralized and censorship resistant.
- There are actually quite a few blockchains that have been hacked.
3. Blockchain is actually a collection of technologies
- The ledger, the peer-to-peer network the consensus and incentive mechanisms are some of the core components that form a type of blockchain implementation. Change any of the components and you may end up with a completely different type of blockchain.
- Currently we are seeing many different types of blockchain and DLT implementations fit for purpose.
4. Blockchain will not necessarily remove all intermediaries
- Some intermediaries may be completely eliminated
- Blockchain will still need to work with intermediaries
- The role and function of many intermediaries will change significantly as a result of blockchain technology
5. Blockchain is a General Purpose Technology (GPT)
- Gone are the days of thinking that blockchain technology is something used to buy drugs on the deep web.
- A GPT is considered to be a technology that can be; 1) applied across a wide spectrum of industries; 2) have capacity for continual improvement and; 3) act as a catalyst for innovation with complimentary technologies. Well known examples include electricity, steam engine, the railroad and more recently, the internet.
Contact: Andre Sterley | Email: Andre.Sterley@MazarsUSA.com
Disclaimer: The information which is summarized herein does not constitute financial or other professional advice and is general in nature. It does not take into account your specific circumstances and should not be acted on without full understanding of your current situation and future goals and objectives.