The national Institute of standards and technology Agency under the Ministry of Commerce of the United States – published a review of the blockchain technology, the purpose of which is to present the essential characteristics of technology, its limitations and common misconceptions about it.
The document is designed primarily for organizations that are considering to work with this technology and those who are trying, despite all the hype around it, to understand its essence. The authors remind us that companies often seek to use new technologies, but before starting work they have to be sure that this is what suits them.
It managers have to say: we understand that, and only then to draw conclusions about the need for this technology in the company or not.
The report lists the most common misconceptions about the blockchain: those related to monitoring, identity management and trust and explains that, although the technology is decentralization and there is no Central institution controls it, the developers are the creators and the users of the system have a certain degree of control over the situation.
Similarly, the blockchain has no control over the behavior of users and only can fulfill the transaction according to the rules and specifications. People, as stated in the document, often mistaken, thinking that the blockchain technology associates private keys with specific people.
The authors also note that there is a mistaken notion that the blockchain is a system which does not require trust, but really need a lot of trust in technology developers and users of the system to enable it to operate successfully.
As for the limitations of the system, NIST said that a huge amount of energy, and throughput – can be problem areas for this technology. Moreover, as users should manage their private keys, the loss of a key entails a higher risk than the loss of user name or password on centralized platforms.