Editors Note: This article comes fromBlue Fox NotesEditors Note: This article comes from
Blue Fox Notes
(ID: lanhubiji), this article is from ConsenSys, translated by the Blue Fox Notes community Dyna, and reprinted by Odaily with authorization.
Preface: Bitcoin and blockchain have strong community attributes. Similarly, there are various understandings of Bitcoin and blockchain. Different routes and ideas have their soil. It is the interaction of different lines and ideas that creates something new. This article is biased towards the decentralized ecology of Ethereum, so its views will have their own preferences. As investors and developers in the encrypted world, they can be inclusive, but they must gradually form their own industry judgments.
Furthermore, there is a trend towards sensationalism in digital media, especially cryptocurrency and blockchain media, which makes nuanced understanding of important issues even more difficult.
As the teams building the infrastructure of the future of blockchains head towards the crypto spring, and the next phase of blockchain development is clearly visible, some fallacies left over from blockchain’s “green years” are worth correcting . Some opinions are held by the general public, others are passed on within the cryptocurrency space. Here are 6 of the biggest misconceptions about blockchain and cryptocurrencies right now, and whats happening to prove them wrong.
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Cryptocurrency mining is bad for the environment
Theres just one problem with these schadenfreude comments: the data on which all these alarmist reports are based has been censored by a lone blogger of dubious morals who estimates his own numbers, distorts his methods, and completely ignores the issue basic aspects. In an in-depth piece on Hackernoon, Robert Sharratt points out how your most trusted news source came up with this news in a brilliant abridgement — “Reports of Bitcoin’s environmental damage are pure rubbish.” It’s a must read.
A 2018 report by the World Economic Forum even identified 65 applications of blockchain technology that would help protect the planet and the environment. Projects like Bounty for Basura are using blockchain to create new models of sustainable development. As Ethereum continues to evolve towards a Proof-of-Stake model (Proof-of-Stake) that is more energy-efficient and environmentally friendly than the Proof-of-Work that currently dominates blockchain technology, we are moving towards a future that alleviates this problem. step forward.
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Bitcoin is cryptocurrency is blockchain
It’s clear that Bitcoin and cryptocurrencies are just the first stage in a long journey of blockchain, with programmable smart contracts and distributed applications like Ethereum the way of the future. Recent reports show that Ethereum’s global developer base — teams building infrastructure, solutions, DApps, and network protocols — is more than twice (conservatively estimated) that of Bitcoin.
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The Dominant Force in the Bitcoin Market Since 2013, Spotting a Trend?
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All cryptocurrencies are securities
The U.S. Securities and Exchange Commission (SEC) has previously stated that eth is not a security. More recently, senior SEC members, including SEC chairman Jay Clayton and treasurer Bill Hinman, have been “playing ping-pong” with public statements in response to positive sentiment. Most recently, in March, Clayton said the digital asset may initially be offered and sold as a security because it meets the definition of an investment contract. But that definition may change over time if the way digital assets are later offered and sold no longer fits the definition.
It is clear that regulations change very slowly, but are necessary to protect individuals from fraudulent and malicious actors. It is worth noting that regulations dating from 1933 should be viewed with a modern lens. The new rules will need to consider various types of token models.
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Scaling the ability of a decentralized network to handle transaction volume without sacrificing security and speed is certainly a difficult problem. However, some of the brightest minds in the world are working on scalability through layer one (e.g. sharding) and layer two (e.g. state channels, plasma) schemes. In a keynote speech at the SXSW Interactive Conference, ConsenSys founder Joe Lubin said that within the next two years, once a layered solution is in place, the Ethereum network will reach the ability to process millions of transactions per second.
All new technologies take time to mature and develop. Ethereum has made significant progress towards becoming the underlying protocol of Web 3.0. The overall Ethereum ecosystem continues to show significant signs of growth, and it is now clear that the roadmap towards scalability is clearly laid out and within reach.
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Cryptocurrencies are only used for nefarious purposes
The Global Drug Survey (GDS) likewise found that cash remains king when it comes to buying drugs or exchanging value for illicit services — and you might find that those who denounce cryptocurrencies rarely point to cash as a problem. The shady technical features of dark web transactions and the use of cryptocurrencies for illicit purposes are sure to make for great news stories.
But so far, with many of the worlds leading institutions like Facebook and JPMorgan on the verge of launching their own digital currencies -- and its clear that Bitcoins early bad reputation was a factor in the technologys fringe -- were now in A more mainstream era.
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Tokens are worthless
The ICO mania has led to thousands of cryptocurrency and blockchain projects working to tokenize the world. While many fundamentally not-so-sound projects have been thrown aside in this wave, what we have gained is a growing ecosystem of ingenious, functional and adaptable and truly remarkable Token-based projects that will make the potential of the blockchain a reality.
