Why Nobody Understands Blockchain (2024)

FAQs

Why is blockchain so hard to understand? ›

There are no standards around what types of data should be included in a transaction, and how it is stored and accessed in blocks. It's important to understand that transactions enabled by smart contracts and dApps can have many sub-transactions, often across blockchains, liquidity pools, and decentralized exchanges.

While blockchain solutions can ensure the integrity of digital data by providing a tamper-proof record of transactions, they cannot verify the authenticity of physical items.

Survey: 60% of US crypto investors don't understand blockchain technology.

A blockchain is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

If you are a beginner in Blockchain development, you will need at least six months to learn it. It also depends on whether you are a self-learner or following a guided curriculum/course. In a guided course, you don't have to worry about what to learn, projects, etc.

The way blockchain was developed made it look like it was incompatible with the status quo. It was meant to challenge (central) banks, companies, and institutions of all kinds. As I said previously, while some people made a lot of money with this, a lot of people also lost a lot of it and got scammed quite badly.

Lack of Clear Objectives and Use-Case

When a project is driven solely by the hype surrounding the technology, it's likely to devolve into a directionless endeavor, eventually leading to its failure. Before embarking on a blockchain project, it's essential to identify what specific issue the technology will address.

Blockchain-based contracts are becoming more and more popular as sectors like government, healthcare and the real estate industry discover the benefits. Below are a few examples of how companies are using blockchain to make contracts smarter.

All but 2% of survey participants across the US, Mexico and Brazil failed to score 60% or better on a quiz of basic concepts related to bitcoin, stablecoins and NFTs, helping to quantify the extent that the general public still does not understand crypto.

Is blockchain still worth learning? ›

Absolutely! Learning blockchain in 2024 opens doors to exciting career paths and allows you to play a role in technological advancements impacting diverse sectors. The investment you make in acquiring these skills has the potential to pay off handsomely in the years to come.

Blockchain can make it easier for companies to manage their supply chain by providing real-time data on every transaction. In this way, companies reap many benefits, as we have already mentioned. Let's now take a look at some examples of using blockchain in the supply chain.

Conclusively, although blockchain technology exhibits immense potential and has made noteworthy advancements thus far, its future hinges on its ability to surmount existing obstacles and secure broad adoption.

Scalability/Harder to Scale

Scalability is a significant issue for blockchain technology. As blockchain networks grow with more users and transactions, they often need help to maintain speed and efficiency. This is a crucial issue for networks like Bitcoin.

No financial system is 100% tamper-proof. Hence, blockchain is no exception. But blockchains are extremely difficult to hack or breach because of their specially-crafted design. There are however two ways to take over the security of a blockchain and its established security mechanism.

Trying to learn blockchain programming can feel very overwhelming! You will surely come across many new concepts, terms, programming languages, and developer tools. It can feel like you are stepping into a different world entirely. In many ways, you are!

​Where does the complexity stem from? A lot of the complexity – and therefore the challenge with blockchain adoption – is a direct result of a lack of standardisation and interoperability. ​Thankfully, the ecosystem is beginning to recognise the importance of developing standards, frameworks and interoperability.

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding).

The way some cryptos are created and operated makes them very different from what some people would class as 'tangible' assets (meaning things that you can physically see and touch) like gold or cash. So called 'unbacked' crypto have no tangible assets that sit behind them.