Fact or fiction? Houston blockchain expert addresses common misconceptions

Myth busting

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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Axiom Space taps solar array developer for first space station module

space contract

Houston-based Axiom Space is making progress on developing its commercial space station.

The company awarded Florida-based Redwire Corporation a contract to develop and deliver roll-out solar array (ROSA) wings to power the Axiom Payload Power Thermal Module (AxPPTM), which will be the first module for the new space station.

AxPPTM will initially attach to the International Space Station. AxPPTM will later separate from the ISS and rendezvous with Axiom’s Habitat 1 (AxH1) on orbit. Eventually, an airlock, Habitat 2 (AxH2) and finally the Research and Manufacturing Facility (AxRMF) will be added to the first two Axiom modules.

AxPPTM is anticipated to launch toward the end of 2027. The two-module station (AxPPTM and AxH1) is expected to be operational as a free-flying station by 2028, and the full four-module station around 2030.

The modules will be integrated and assembled at Axiom Space’s Assembly and Integration facility, making them the first human-rated spacecraft built in Houston.

Redwire’s ROSA technology was originally developed for the ISS, according to Space News. It has yielded a 100 percent success rate on on-orbit performance. The technology has also been used on NASA’s Double Asteroid Redirection Test mission, the Maxar-built Power and Propulsion Element for the Artemis Lunar Gateway and Thales Alenia Space’s Space Inspire satellites.

“As a market leader for space power solutions, Redwire is proud to be selected as a strategic supplier to deliver ROSAs for Axiom Space’s first space station module,” Mike Gold, Redwire president of civil and international space, said in a news release. “As NASA and industry take the next steps to build out commercial space stations to maintain U.S. leadership in low-Earth orbit, Redwire continues to be the partner of choice, enabling critical capabilities to ensure on-orbit success.”

Greentown Houston to add new AI lab for energy startups

AI partnership

Greentown Labs has partnered with Shoreless to launch an AI lab within its Houston climatetech incubator.

"Climatetech and energy startups are transforming industries, and AI is a critical tool in that journey," Lawson Gow, Greentown's Head of Houston, said in a news release. "We're excited to bring this new offering to our entrepreneurs and corporate partners to enhance the way they think about reducing costs and emissions across the value chain."

Shoreless, a Houston-based company that enables AI adoption for enterprise systems, will support startups developing solutions for supply-chain optimization and decarbonization. They will offer Greentown members climate sprint sessions that will deliver AI-driven insights to assist companies in reducing Scope 3 emissions, driving new revenue streams and lowering expenses. Additionally, the lab will help companies test their ideas before attempting to scale them globally.

"The future of climatetech is intertwined with the future of AI," Ken Myers, Founder and CEO of Shoreless, said in a news release. "By launching this AI lab with Greentown Labs, we are creating a collaborative ecosystem where innovation can flourish. Our agentic AI is designed to help companies make a real difference, and we are excited to see the groundbreaking solutions that will emerge from this partnership."

Greentown and Shoreless will collaborate on workshops that address industry needs for technical teams, and Shoreless will also work to provide engagement opportunities and tailored workshops for Greentown’s startups and residents. Interested companies can inquire here.

Recently, Greentown Labs also partnered with Los Angeles-based software development firm Nominal to launch the new Industrial Center of Excellence at Greentown's Houston incubator. It also announced a partnership with Houston-based EnergyTech Nexus, which will also open an investor lounge on-site last month. Read more here.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston medical institutions launch $6M kidney research incubator

NIH funding

Institutions within Houston’s Texas Medical Center have launched the Houston Area Incubator for Kidney, Urologic and Hematologic Research Training (HAI-KUH) program. The incubator will be backed by $6.25 million over five years from the National Institutes of Health and aims to create a training pipeline for researchers.

HAI-KUH will include 58 investigators from Baylor College of Medicine, Texas Children’s Hospital, the University of Texas Health Science Center at Houston, University of Houston, Houston Methodist Research Institute, MD Anderson Cancer Center, Rice University and Texas A&M University Institute of Biosciences and Technology. The program will fund six predoctoral students and six postdoctoral associates. Trainees will receive support in scientific research, professional development and networking.

According to the organizations, Houston has a high burden of kidney diseases, hypertension, sickle cell disease and other nonmalignant hematologic conditions. HAI-KUH will work to improve the health of patients by building a strong scientific workforce that leverages the team's biomedical research resources to develop research skills of students and trainees and prepare them for sustained and impactful careers. The funding comes through the National Institute of Diabetes and Digestive and Kidney Diseases.

The principal investigators of the project include Dr. Alison Bertuch, professor of pediatric oncology and molecular and human genetics at BCM; Peter Doris, professor and director of the Institute of Molecular Medicine Center for Human Genetics at UT Health; and Margaret Goodell, professor and chair of the Department of Molecular and Cellular Biology at Baylor.

“This new award provides unique collaborative training experiences that extend beyond the outstanding kidney, urology, and hematology research going on in the Texas Medical Center,” Doris said in a news release. “In conceiving this award, the National Institute of Diabetes and Digestive and Kidney Diseases envisioned trainee development across the full spectrum of skills required for professional success.”

Jeffrey Rimer, a professor of Chemical Engineering, is a core investigator on the project and program director at UH. Rimer is known for his breakthroughs in using innovative methods in control crystals to help treat malaria and kidney stones. Other co-investigators include Dr. Wolfgang Winkelmeyer (Baylor), Oleh Pochynyuk (UTHealth), Dr. Rose Khavari (Houston Methodist) and Pamela Wenzel (UT Health).

“This new NIH-sponsored training program will enable us to recruit talented students and postdocs to work on these challenging areas of research,” Rimer added in a release.

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