Tech experts say that Blockchain technology is future, usually, they compare it to the 90s era of the Internet.
Because Blockchain can be usable in wide range rather than just to be usable in cryptocurrencies.
Then what is Blockchain…?
Simply Blockchain is a distributed ledger system or it’s just like a record book but it is not maintained by one person, it is decentralized and any interested person can keep and maintain the record book.
The blockchain is a new and revolutionary concept in technology that’s why more techies are interested in it.
But it has its own Advantages and Disadvantages, so look at them one by one.
1. It is a Decentralized System.
Yes, most of cases blockchain is a decentral system that means no central authority can take control of the system.
The core value of blockchain is, it enables a database to be directly shared without a central administrator.
If any data stored in the memory and disk of a particular computer system run by a third party even if it is a trusted organization like banks and governments, it is vulnerable to access by anyone who somehow got into that system can easily corrupt the data within.
Blockchain can eliminate the cost of hiring expert people to prevent or to stop the attacks on the system by using cryptography.
2. The Blockchain is Transparent.
Any data in the blockchain can be viewable for any person, also if any changes were made in the blockchain those changes are publicly viewable.
That’s why blockchain used in cryptocurrencies because, in cryptocurrency, every transaction is recorded and showed to the public.
3. The Blockchain is More Secure.
Yes, Blockchain is more secure to store data than any other 3rd party systems, because blockchain uses cryptography.
Also, it is a transparent and secure system at the same time. Users, on the other hand, are not transparent; up to a point, they too are secure behind their wall.
If you are interested in how blockchain work with the help of cryptography then below video may be helpful for you.
Above video uses Bitcoin blockchain example but Blockchain works pretty the same in other things too.
4. Faster and Cost Effective.
If you used any cross-border transactions and/or between banks can take days and be quite expensive.
But in the case of blockchain based cryptocurrency transactions, you are able to send money to anywhere and to anyone in the world because blockchain is decentralized and no paper works needed.
To be clear, blockchain transactions are not fast (at all); they’re just faster than international inter-banking. They are also cheaper, though by no means free. In fact, if you want a speedier transaction, you’ll have to pay for it. Still, compared to traditional system Blokcchian is faster and cost-effective.
5. It is Immutable.
If you record any data into blockchain then it is not easy to alter or change that particular data.
In other words, you cannot go back to last week’s transaction and alter the block that contains it. Well, you could, but then you would alter every single block – and every single transaction within every block – that comes after the altered transaction. For better or worse, that transaction is there to stay.
That makes no sense to alter every block information and it seems impossible to alter or change blocks especially in cryptocurrencies.
6. It Can Record Historical and Current Records In One Place.
You know Bitcoin Blockchain size in more than 170 GB! that means all current and historical transactions recorded in the blockchain securely and Bitcoin blockchain is decade old! you can go back and look at Satoshi Nakamoto’s first blocks to see where it all began…
Unlike regular databases, blockchains contain every single block of information, from the beginning of time until just a few minutes ago.
That’s why Blockchain is very helpful to store huge records and manage them.
7. No Downtime.
Did you know in 2018 Amazon suffered at least 5 times server down issue!.
Amazon is a massive money maker and they use cloud infrastructure servers with those facilities they could not get away with downtime issue.
But in the blockchain, there is no downtime period and service doesn’t stop.
Because blockchain is not hosted on a computer or a server; it’s hosted everywhere, every node connected to the network from different locations that’s why blockchain does not face any downtime issue.
8. User Empower.
In blockchain, you can see every data and you can control all their information and transactions. It’s like an internet democracy By the people, for the people, and to the people.
The user of blockchain is king here no central authority can interrupt system.
Ok, these are some Advantages of Blockchain technology.
Let’s look at some Disadvantages of this technology.
The blockchain is not as simple as it looks like, non-techie or old generation people cannot understand this technology easily.
Nodes, Cryptography, Mining these terms somehow understandable by some extent but it is not possible to have a trustworthy service without understanding.
2. Size of Blockchain.
As I mentioned below that Bitcoin Blockchain is 170 GB but every day when new transactions happen data are recorded to blockchain so blockchain grows every second.
Second famous cryptocurrency Etherium blockchain size is more than 1 TB!, that’s why large public implementations of Blockchain is critical.
3. Need More Resources.
Blockchain network requires nodes to run, old and famous network have enough nodes to run their network but new blockchain facing the problem of lack the number of nodes to facilitate widespread usage, and nodes need more reward for their participation in the network.
Also, nodes are giving their time and energy to the network to run efficiently so they expect a high return, therefore, any new blockchain network need more initial resources to facilitate nodes and take care of other security measures.
4. Human Errors.
You already know blockchain is immutable therefore information going into the database needs to be 100% sure and correct if any mistake happens with data then it cannot be altered.
Also, most of the blockchain is access through Private Key if the private key is lost then it is almost impossible to access the network, so this technology needs more accuracy than any system.
Above are some Disadvantages of Blockchain technology, but still, there are cybersecurity concerns needs to be addressed before the general public entrust their personal data to the Blockchain solutions.
Above are some Advantages and Disadvantages of Blockchain technology, as you know this technology is growing every day and more usage opportunities are coming into existence that’s why it is a bit difficult to address what is good and bad in it.
If you know more good and bad side of this technology then feel free to add those points in comments.