Advantages and Disadvantages Of Blockchain Technology
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1. Objective – Blockchain Pros and Cons
We have learned a brief of Blockchain Technology in our previous Blockchain tutorial, that gives us a little understanding of the advantages and disadvantages of Blockchain. So, in this article of “pros and cons of Blockchain”, we will get a deep understanding of the various limitations and features of Blockchain Technology.
So, let’s start with Advantages and Disadvantages of Blockchain Technology.
2. What is Blockchain Technology?
Blockchain technology was first introduced in 2008 and was implemented from 2009. Its very first implementation was in the cryptocurrency Bitcoin. The success of Blockchain has moved the technology to a very wide range which ultimately provided a huge amount of convenience to the organization’s but on the other hand, if the technology has pros, it has its cons too. So, let us study the advantages and disadvantages of Blockchain in detail.
3. Advantages and Disadvantages of Blockchain
Below discussed are the major advantages and disadvantages of Blockchain. Let’s discuss them in detail.
a. Advantages of Blockchain
i. Process Integrity
Due to the security reasons, this program was made in such a way that any block or even a transaction that adds to the chain cannot be edited which ultimately provides a very high range of security.
The format of Blockchain designs in such a way that it can easily locate any problem and correct if there is any. It also creates an irreversible audit trail.
Do you Know the importance of Blockchain Technology
Blockchain technology is highly secure because of the reason each and every individual who enters into the Blockchain network is provided with a unique identity which is linked to his account. This ensures that the owner of the account himself is operating the transactions. The block encryption in the chain makes it tougher for any hacker to disturb the traditional setup of the chain
iv. Faster processing
Before the invention of the blockchain, the traditional banking organization take a lot of time in processing and initiating the transaction but after the blockchain technology speed of the transaction increased to a very high extent. Before this, the overall banking process takes around three days to settle but after the introduction of Blockchain, the time reduced to nearly minutes or even seconds.
b. Disadvantages of Blockchain
i. Power Use
The consumption of power in the Blockchain is comparatively high as in a particular year the power consumption of Bitcoin miners was alone more than the per capita power consumption of 159 individual countries. Keeping a real-time ledger is one of the reasons for this consumption because every time it creates a new node, it communicates with each and every other node at the same time.
Let’s discuss Bitcoin and Cryptocurrencies in Blockchain
As per the studies as an average cost of the Bitcoin transaction is $75-$160 and most of this cost cover by the energy consumption. There are very fewer chances that this issue we can resolve by the advancement in the technology. As the other factor that is the storage problem might be covered by the energy issues cannot be resolved.
iii. Uncertain regulatory status
In each and every part of world modern money has been created and controlled by the central government. It becomes a hurdle for Bitcoin to get accepted by the preexisting financial institutions.
So, this was all about the advantages and disadvantages of Blockchain. Hope you like our explanation of Pros and Cons of Blockchain technology.
Hence, in this Blockchain tutorial, we learned about the various possible advantages and disadvantages of Blockchain technology. Next, we will see the features of Blockchain. Furthermore, if any query occurs, feel free to ask through the comment section.
See also- Oracle Blockchain Cloud Service