Everyone’s talking about the Bitcoin blockchain – a global, distributed ledger of transactions for the Bitcoin digital currency – allowing for peer-to-peer payments over the Internet.
According to a Gartner definition, the Bitcoin blockchain is “an authoritative record of Bitcoin transactions, and is not stored in, or controlled by, a central server.” Instead, transaction data is replaced as a whole across a peer-to-peer network of thousands of coins.
The Bitcoin blockchain is being applied across many industries in areas such as the Internet of Things, digital rights management, and global payments.
But among all the global noise, there is some confusion around what it can and can’t do. In a report published this month, Gartner analysts Ray Valdes, David Furlonger, and Fabio Chesini shared seven common myths about the Bitcoin blockchain.
Myth 1: The blockchain is a magical database in the cloud
The blockchain is not a “general purpose database” but rather it is conceptually a flat file – a linear list of simple transaction records, the analysts said in the report.
“This list is ‘append only so entries are never deleted, but instead, the file (currently about 50 gigabytes), grows indefinitely and must be replicated in every node in