Here are some of the most common, misunderstood aspects about blockchain technology. Getty Images

Blockchain has become one of the most talked about emerging technologies, often mentioned in the same breath as artificial intelligence, virtual reality, Internet of Things, and big data technologies. But as a relatively new technology, it's totally expected that people will not fully comprehend aspects of the technology.

Here are some of the most common, misunderstood aspects about blockchain technology.

1. Blockchain is the same as Bitcoin (and other cryptocurrencies)

Source of misconception: The first and probably the most common misconception about blockchain is that it is the same as Bitcoin or cryptocurrency in general — and it is not hard to spot where this comes from. Blockchain as a technology became popular almost a decade after the release of the Bitcoin whitepaper. It is very common for people to refer to it as the technology that powers Bitcoin, and while this is totally correct, people forget one important fact — blockchain does a lot more than just enabling Bitcoin and other cryptocurrencies.

The truth about blockchain: A blockchain is basically a decentralized ledger of transactions. It follows therefore that a Bitcoin blockchain will record Bitcoin transactions. However, blockchain can record virtually anything of value, not just cryptocurrency transactions, provided that the data can be represented on the chain. For instance, J.P. Morgan announced last year that it was tokenizing Gold bars via its enterprise blockchain known as Quorum. Blockchain has found applications in healthcare, supply chain, oil and gas, in addition to finance.

2. Cryptocurrencies (and by association blockchain) are used for illegal activities

Source of misconception: Cryptocurrency has a reputation (earned or otherwise) of being closely associated with crimes like ransomware attacks, money laundering, drug trafficking, and dark web activities. This is because cryptocurrency transactions are relatively harder to track, and criminals have used cryptocurrency in the past to perpetuate these activities. This has been blown out of proportion by law enforcement agencies and notable figures like Bill Gates and Jamie Dimon.

The truth about blockchain: Truth is, regular fiat currencies (the US dollar and Euro specifically), and not Bitcoin or other cryptocurrencies, remain the main medium of sponsoring criminal activities. A Europol report last year confirmed that Bitcoin and other crypto were not used to sponsor terrorism in the region, contrary to widely held opinions. Furthermore, the ratio of illegal to legal activity in Bitcoin has dropped since it became more popular and widely used. Special agent Lilita Infante at the U.S. Drug Enforcement Administration estimates a drop from 90 percent to 10 percent in the last five years. Actually, banks and other legitimate institutions are adopting blockchain technology for cross-border payment settlements.

3. Blockchain transactions are anonymous

Source of misconception: Again, this comes from a widely held belief that blockchain (actually cryptocurrency) is unregulated. It has been positioned as the antithesis of data-collating centralized systems, and therefore has to be anonymous.

The truth about blockchain: On the contrary, blockchain — especially public blockchains — are open and transparent ledgers that show transactions between different addresses. It's fairly easy to track transactions on a public blockchain using block explorers like Etherscan. Also, KYC requirements at many crypto exchanges make it possible to associate these address with real people. That said, there are privacy-focused blockchains like Z-Cash and Monero which use special cryptographic techniques to shield certain details of transactions.

4. Blockchain will solve all the world’s problems

Source of misconception: Hype. As blockchain technology gained in popularity, so came individuals seeking to apply it to every sector of human endeavor. Likening it to the internet, they created an impression that blockchain can and will address pain points in businesses across all industries. As impressive as it is, blockchain, like every technology before it, has its applications and its limitations.

The truth about blockchain: The extent of blockchain's impact has not yet been fully exploited but it will be preposterous to say that blockchain will solve all the world's woes. Through decentralization, blockchain provides trust, and security thereby removing the need for third parties; this is where its realistic use cases arise. At the moment, issues like scalability need to be addressed for blockchain to become commercially viable.

5. Blockchain applications will work all by themselves, independent of existing technology

Source of misconception: Hype again. On the backs of No. 4, blockchain is sometimes looked at as a standalone, independent technology. Given the hype surrounding blockchain, folks could be forgiven for thinking that the technology will work all by itself, without having to deal with legacy applications and technologies.

The truth about blockchain: Blockchain applications most often must work side by side with other existing technologies and systems, as well as in some cases, with emerging technologies like IoT, AI and others. In the financial sector, for instance, blockchain is incorporated into existing payment systems to facilitate cross-border payment settlements.

6. Blockchain only has application in finance

Source of misconception: This stems from the misconception that blockchain is all about Bitcoin or a new order of currency that will replace fiat.

The truth about blockchain: The fintech sector, more than any other, has adopted blockchain technology since its early days. That said, blockchain applications are spreading across various industries. In addition to the ones mentioned previously, projects like MedRec, PowerLedger, and Vakt are adopting blockchain in healthcare, energy, and the oil and gas industries, respectively.

7. Blockchain is the same as Cloud

Source of misconception: Both are internet-based technologies and involves access to data from different devices, but that's as similar as they get. Cloud service providers like Amazon are introducing enterprise blockchain solutions to cloud-based services.

The truth about blockchain: As a shared ledger, blockchain data is not stored on a central set of servers as is the case with cloud services. Also unlike cloud storage, blockchain doesn't usually hold actual physical information like pdf files rather it makes a record of its existence.

8. Blockchain is a single technology

Source of misconception: This comes from the likening of blockchain to the internet. As there is one internet, some people erroneously believe that there is a single blockchain.

The truth about blockchain: There are several blockchain networks — both private and public. While Bitcoin blockchain is the biggest blockchain, there are other public blockchains like Ethereum and Litecoin as well as private blockchains based on Hyperledger.

While these misconceptions are still prevalent within and outside the blockchain community, efforts are underway to dispel these myths. Education and an open dialog is key in such cases. Those within the blockchain community need to make a concerted effort to truly listen to what those outside are saying. Solution providers also need to understand the business, its issues and pain points, and propose the correct solution, whether blockchain-based or not. Blockchain technology is still in its infancy. Remember when folks did not know what the internet was or when it was nothing but hype? In 20 years or so, we will have a few such stories to laugh at.

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Mahesh Sashital is the founder and chairman of the Houston Blockchain Alliance.

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Houston engineers develop breakthrough device to advance spinal cord treatment

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A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.