3 Biggest Blockchain Myths Debunked

August 21, 2018

Despite its speed in verifying records and heightened online security, real estate professionals have been slow to adopt blockchain.

Blockchain myths

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Natalia Karayaneva, CEO of Propy, a real estate marketplace that uses blockchain to facilitate transactions based in San Francisco, says there are a lot of misconceptions about the new technology. She’s debunking three perceived risks.

Myth 1: Blockchain isn’t as secure as we think.

Karayaneva says blockchains such as ethereum or bitcoin have never been hacked. The Decentralized Autonomous Organization (known as the DAO) and exchanges have been hacked, but the blockchain ledgers cannot be hacked because they will reject any record with altered data, she says.

Myth 2: Blockchain is a hotbed of illegal activity.

“Yes, criminals can use the blockchain for illegal activities. Criminals can also use highways to carry drugs, but no one is calling highways ‘hotbeds of illegal activity,’ because regular people use them to perform legal, necessary tasks,” Karayaneva says. “In the same way, the use of blockchain for legitimate purposes renders it irreplaceable.”

Myth 3: Blockchain is simply for trading cryptocurrency.

Because blockchains prevent errors in record-keeping and accelerate transactions by eliminating third-party verifications, Karayaneva says that the technology can enhance nearly any industry.

Natalia Karayaneva, Propy.com