Top 8 Most Common Myths About Cryptocurrency

An instrument born at the intersection of cryptography and mathematics has long outgrown the boundaries of cryptocurrency exchanges. The sphere of blockchain technologies is rapidly expanding — from logistics and medicine to agriculture and financial markets.

Logistics: Transparency Instead of Paper Chaos

Maersk, FedEx, Walmart — not technological startups, but giants of global trade. Nevertheless, they were among the first to implement blockchain in logistics processes. In 2022 alone, the TradeLens system (developed by IBM and Maersk) recorded over 20 million container operations. Every action, whether it’s loading at a port, crossing a border, or unloading at a terminal, is instantly reflected in the chain of blocks. Information is not edited retroactively, which means it can be trusted.

Benefits include:

1. Reduction of time for processing logistics documents by 40–60%.
2. Complete elimination of the risk of falsifying invoices and transport manifests.
3. Automatic resolution of disputes between supply chain participants.

Result: deliveries arrive faster, costs are reduced, trust among chain participants is formed automatically. Moreover, blockchain reduces the risks of customs delays and increases transparency of control at all stages of logistics.

Finance: Transactions Without Intermediaries

Citibank, Santander, JPMorgan use distributed ledgers not out of trendiness, but out of calculation. Just through the Onyx system, JPMorgan processed transactions totaling over $1 trillion in 2023. The use of blockchain technologies in the financial sector ensures lightning-fast settlements without banking pauses and manual checks.

Banks use asset tokenization, reducing clearing times and increasing liquidity. Interbank transfers no longer wait for days — they are completed in seconds, including nights, weekends, and holidays.

Healthcare: Digital Sterility of Data

Since 2021, every citizen in Estonia stores their medical records on a blockchain system. In the US, BurstIQ processes anonymized medical data through a distributed network. Blockchain technologies in healthcare ensure confidentiality and secure access to information.

Cases:

1. Pfizer implemented a blockchain solution to track vaccine authenticity.
   
2. Stanford Health created a platform with blockchain audit of operations.
   

Every diagnosis, every procedure — not just a record in a database, but a secure fragment of the chain. Neither the clinic nor the pharmaceutical company can manipulate the data in their favor.

Insurance: Without Forgeries and “Lost” Contracts

AXA and Allianz digitized claims settlement using smart contracts. Blockchain technologies in the insurance sector eliminate “lost” claims and “forgotten” payments. For example, AXA implemented automatic compensations for flight delays — based on a blockchain registry of flights.

The system immediately verifies the delay, confirms through an independent source, and automatically transfers the insurance amount to the client. No calls, queues, or waiting.

Government Sector: Control Without Cameras

Sweden conducted the first real estate transactions through blockchain. Estonia, Georgia, Sierra Leone use decentralized registries for land records, civil acts, and elections. Blockchain technologies in government management create an archive where records cannot be “erased” or “adjusted.”

Specific effects:

• Reduction of corruption through complete transparency;
  
• Budget savings on paper documentation;
  
• Instant verification of data authenticity.
  

Trust is no longer bought, it is built on an immutable architecture.

Environmental Protection: Green Blocks Instead of Green PR

IBM and Verra track carbon credits on the blockchain. WWF created the OpenSC project, recording supply chains of sustainable products. Blockchain technologies in environmental protection allow transparent tracking of the journey of fish from fisherman to market. Without substitutions and manipulations.

Each movement is recorded in a block, each label is certified by a smart contract. No more “eco-friendly” myths — only documentary confirmed routes.

Blockchain Technologies in Various Sectors: Advantages and Disadvantages

Even the most versatile tool is not without drawbacks — no matter how precise, even a Swiss knife loses its sharpness over time. Blockchain technologies in various sectors are no exception. Behind architectural rigor lie both opportunities and challenges. A deep understanding of these aspects is critical for accurate implementation and effective scaling of solutions. Let’s look in detail at the pros and cons:

Advantages:

1. Decentralization eliminates monopoly and censorship.
   
2. Transparency ensures control of all operations.
   
3. Security is achieved through cryptographic protection.
   
4. Speed and automation of transactions reduce costs.
   
5. Universality: suitable for any digital data.

Disadvantages:

1. High energy consumption load (especially in PoW).
   
2. Limited scalability in public networks.
   
3. Challenges in legal adaptation.
   
4. Low level of digital literacy among users.
   

The balance between advantages and disadvantages depends on the application area. Some blockchains already operate on solar energy (e.g., Solana). Others are transitioning to energy-efficient algorithms (Ethereum with the shift to PoS).

Future: Algorithms Instead of Arbitrators

Gartner predicts that by 2030, 20% of the global GDP will pass through blockchain. The technology has already ceased to be an experiment. It is the infrastructure of the future: invisible yet defining.

Growth Directions:

1. Identity verification without passwords.
   
2. Smart cities with decentralized management systems.
   
3. Digital passports for goods and people.
   

The spheres of blockchain technologies of the future are not a distant hypothesis but a growing reality. Where notaries, data processing centers, and dozens of employees were once required, now code works. Reliable, open, and independent.

Applications of Blockchain Technologies: Conclusions

The implementation of blockchain technologies covers dozens of sectors. Each case shows: trust is not a promise but an architecture. Cryptographic, decentralized, transparent. Without intermediaries, errors, or kickbacks. Where bureaucracy, abuses, and shady schemes once ruled, blockchain creates digital order. Strict yet fair. Algorithm instead of administrative resource. Logic instead of “by word of mouth.”

Originally associated exclusively with cryptocurrencies, blockchain has evolved into a tool that can transform the way businesses, governments, and social systems work. Classifying systems is important to understanding their functionality and selecting the right scheme for specific tasks. Classifying blockchain technology into types helps identify the best models for different applications: finance, healthcare, logistics, and energy.

Type 1: Public blockchain: transparency and decentralisation in action

A public blockchain is an open, decentralised network where any participant can be part of the ecosystem, verify transactions and use internal resources. This approach offers high transparency, reliability and independence from centralised authorities.

Public networks are based on the principles of openness and equality. Anyone can connect, without having to go through complicated registration procedures or provide personal information.

Characteristics of public networks:

1. Decentralisation. Management is performed by multiple nodes in the network, to the exclusion of a single control.
2. Cryptographic protection. Each transaction is encrypted and recorded in an immutable log.
3. Transparency. All transactions can be viewed by any participant.

Examples

Some of the best-known representatives are Bitcoin and Ethereum. These networks set the standard for the entire industry:

1. Bitcoin, launched in 2009, was the first example of the use of a public blockchain. It provides secure storage and transfer of digital assets and protects data using the Proof-of-Work (POW) algorithm. It has a maximum processing speed of up to 7 transactions per second.
2. Ethereum focuses on creating decentralised applications and supporting smart contracts. The network is widely used in DeFi (decentralised finance) and NFT (non-fungible tokens) projects.

Challenges and limitations

Despite its advantages, the public type of blockchain has some limitations:

1. Scalability. Limited network bandwidth, especially at times of high demand.
2. Energy consumption. Using the POW algorithm consumes a lot of resources. The bitcoin network consumes about 130 terawatt hours of energy per year, equivalent to the energy consumption of a small country.
3. High cost. During periods of blockchain congestion, users face higher transaction costs. In 2021, Ethereum’s cost was $40 per transaction.

The format is actively used in cryptocurrencies, decentralised autonomous organisations (DAOS) and digital finance, demonstrating resilience and efficiency.

Type 2: private blockchain – a tool for internal transactions

A private blockchain, unlike a public blockchain, is a closed network with limited access, where participants are subject to strict verification. These systems are managed by one or more organisations, ensuring control and security of transactions.

Private blockchains are designed to solve business problems and are characterised by high speed, low cost and flexibility. Access to the technology is limited and management is concentrated in the hands of specific users or organisations.

Features:

1. Access control. Only authorised subscribers can perform transactions or view data.
2. High performance. Average transaction speed of up to 1,000 transactions per second.
3. Configuration flexibility. Ability to adapt network rules to business needs.
4. Power saving. Private networks use algorithms that consume fewer resources, such as Proof-of-Authority (POA) or Practical Byzantine Fault Tolerance (PBFT).

Application examples

The best-known platforms are:

1. Hyperledger. Hyperledger was developed by the Linux Foundation and is used in logistics, finance and healthcare. Its purpose is to track deliveries in real time. Hyperledger Fabric processes up to 20,000 transactions per second.
2. Corda. Platform aimed at the financial sector. Corda helps automate interbank settlements, reducing costs and speeding up transactions.

Comparison

Private types of blockchain compare favourably with public ones in a business environment, but also have limitations.

Advantages:

• High data processing speed;
• closed structure reduces risk of hacker attacks;
• lower security costs.

Disadvantages:

• Centralised management;
• limited decentralisation reduces user trust;
• vulnerability to insider threats.

Type 3: Hybrid blockchain – balance between privacy and openness

Hybrid blockchains are a unique combination of public and private technologies. This structure allows organisations to customise data access, offer open services to customers and protect internal processes. Systems can choose which information is public and which remains private.

Features:

1. Customisable access. Ability to customise the degree of openness of data.
2. Interoperability with public networks. Benefits of both technologies can be exploited.
3. Flexibility of application. The system is simultaneously suitable for private and public purposes.

Application examples:

1. Dragonchain. The system developed by Disney supports intellectual property protection and contract management. Dragonchain enables the integration of open and closed platforms and ensures high performance and security.
2. XinFin. A hybrid blockchain to optimise international trade. XinFin is used in logistics and finance and provides transparency and cost reduction.

Type 4: consortium blockchain – joint data management

A consortium blockchain is a network managed by a group of organisations, making it a partially decentralised technology. These networks establish trust between participants by sharing control and responsibility.

This type of blockchain focuses on sharing data between a limited number of users. Management of the network and validation of transactions are shared between different companies to reduce the risk of misuse.

Characteristics:

1. Partial decentralisation. The network is managed by a group of participants, ensuring equal rights and greater trust.
2. Transparency. All activities on the platform can only be inspected by specific nodes.
3. High performance. The speed of transactions is higher than public blockchains: it reaches several thousand transactions per second.
4. Flexibility. Adjustment of network parameters to adapt it to the specific objectives of the consortium.

Examples of use cases:

1. Quorum, developed on Ethereum, is used in supply chain management and financial transactions. This platform supports data privacy and is therefore sought after in the banking sector.
2. B3i (Blockchain Insurance Industry Initiative) is a project in the insurance sector. A consortium of large insurers is using the platform to simplify settlements between market participants and increase process transparency.

Conclusion

The classification of the technologies helps determine which approach best suits the needs of a particular task. Each of the four systems has unique features and application scenarios. Choosing the type of blockchain depends on the objective. For example, a public network is suitable for digital finance, while a consortium network is suitable for supply chain management. By understanding the differences, users can optimise the use of the technology to solve business problems.