In the previous blog we explained blockchain in the simplest possible way, whose link would be below. Here we are going to talk about advantages and disadvantages of blockchain technology because this will answer all the questions similar to it like if ‘Blockchain is revolutionary why hasn’t it pick it up?’ ‘What problem blockchain has solved?”Is blockchain all hyped etc and etc. ‘ Before addressing the title, if you have got the essence of blockchain then picture would be clear.According to the authors of “Blockchain Revolution,” Don & Alex Tapscott, “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” More about the same has been discussed in the previous blog linked down belo.Here, lets begin with top 5 advantages and disadvantages of blockchain technology.
Top 5 Advantages of Blockchain Technology
Every entry in blockchain as a block is 100% transparent to users that is why it could be used in bitcoin. Like in bitcoins the data is of transaction and no data can be altered or deleted. Its visible and all can know about new additions to the data.
First of all, with blockchain, you get a distributed system. It means that it gets rid of any middlemen from your system. But how is that an advantage? In reality, middlemen tend to be the third party source that connects you to your services.
Everyblock that enters after all nodes verify it. Secondly every block is encrypted with a hash value. And it is extremely difficult to hack it as block chain is chain of blocks so to decrypt hash of one blog and change it and so for chained paired blocks is not that easy man!!
So, in times of an emergency, many consumers can’t rely on the slow-paced system of traditional banks. However, with blockchain, you can complete a transaction within a few seconds!That’s awfully faster than any traditional means so far.
Even the first block to block added a milli sec ago is traceable as blocks are immutable!! You can’t change the data everrr and its visible for all at once!!
Top 5 Disadvantages of Blockchain Technology
1.Can’t Edit Data in a Block:
Since blocks in blockchain are immutable. Chances of getting errored data FOREVERRRR is huge!! And, its awful when you could see your mistake lasting a lifetime!
2.It is not for everyone:
Well ofcourse blockchain is not intended for everyone or to solve every purpose out there!! Block chain is complicated and you need to get the essence of it to be able to crack it well!
3.Data is visible to all:
That is a major major limitation that you are making a decentralized and distributed system whose data is visible to all the users. Access is the biggest thing in a system to play with functionality and that here has limited the game altogether!
In reality, the computation needs of this technology are more repetitive than centralized servers. It’s because every time the ledger is updated, all the nodes need to update their version of the ledger as well.
5.It is costly to host:
Decentralized means it is hosted at all the hosts where nodes are! So, there isn’t only one server but multiple and huge amount of data means it is a costly stuff happening!!