Each and every technology has its own advantages and disadvantages of blockchain technology. Likewise blockchain technology too.
Blockchain technology is the current trend or format used by many developers to create sustainable and everlasting solutions by minimizing the costs and human power.
What do you mean by blockchain distributed ledger technology?
Blockchain was introduced in 2008 and implemented in 2009 with help of the cryptocurrency bitcoin. The blockchain is a public distributed ledger which stores the data across the entire network. In cryptographic language, it is the continuous growing lists of records called blocks which are interlinked and secured using the cryptography. Each block holds the hash value, timestamp and the transaction data.
For more detailed information of the blockchain, architecture goes through the below link.
The success of the blockchain made the technology to rise to great heights but on the other hand its own advantages and disadvantages of blockchain technology.
Advantages and disadvantages of blockchain technology in 2018.
Advantages of blockchain technology:
The key or core value of the blockchain technology is that it enables the shared database to it’s users without any central administrator or central authority.Instead of centralized applications, blockchain transactions had their own proof of validity and authorization to enforce the constraints.With the help of the blockchain consensus rule, all the nodes in the network acts as the self administrators, transactions can be verified and processed independently.
However any business without third party involvement benefits a lot. Because databases are still tangible as if you want to store the data in the memory or disk which are handled by the third party such as banks, government agencies etc. Here anyone who had got access can easily corrupt the data in spite of it’s trust. So here blockchain technology came into existence for the better future.
If there is third party who controls the databases need to hire the people to design the processes to prevent database from being tampered with.Hiring takes more amount and time as well. Blockchains replace with the distributed databases locked down by the clever cryptography.
- High quality data:
Blockchain data is complete, consistent, timely, accurate and widely accepted network for many organizations. You can produce high quality data for the users.
- Empowered network:
With the blockchain technology the users are empowered with the control of all the information and transaction.
- Durability, Reliability and Longevity:
As the blockchain is the decentralized network it had no central point of failure. It supports great reliable nature reduces the malicious attacks.
- Process Integrity:
Users can trust the transaction as they are executed as per the protocol commands. Any transaction added to the chain cannot be altered where security is maintained.
- Transparency and Immutability:
In the blockchain technology all the data and transactions are transparent and can be viewed by all the users across the network. Immutable means any information cannot be altered, if any changes done to a single block means you should change it’s subsequent blocks also.
Blockchain technology is highly secure because each and every individual who enters into the blockchain network is provided with the unique identity which is linked to his account. The block encryption makes it tougher for the hacker to disturb the chain.
Disadvantages of blockchain technology:
Network speed/Higher cost:
As blockchain is a set of nodes to run it requires huge computational power and higher usage of electricity also. One need to give the nodes higher costs as they get huge rewards for the multiple transactions across the network. Also the transactions are slow down as there will be prioritized of the transactions for the nodes to process.
However blockchains with decentralized network always slower the process than centralized networks. When a transaction is processes in a blockchain it does the same thing as the regular database does but it requires additional 3 steps to complete the transaction very accurately, reliably.
In blockchain there is signature verification such as public, private cryptography scheme such as ECDSA. This is necessary as the transactions propagate in a peer to peer fashion. But where is an in centralized networks there is no need to verify simply establish the connection itself. In blockchain it follows the redundancy process as the transactions are process duplicately at each and every node for the same end result. Where as in centralized network processing takes place only once or twice.
Uncertain regulatory status:
As we know that many of the modern currencies are regulated by the governments but the blockchain and bitcoin remains in hurdle state as it government regulation status remains unsettled so far.
Immutable smart contracts:
Once the smart contracts are added to the blockchain they cannot be immuted anymore. If there are many flaws in the code to run the smart contracts then entire budget put in the smart contract goes waste causing great loss.
In Spite of many advantages and disadvantages of blockchain technology, there are several features of the blockchain technology which I had explained previously.For more in depth on the blockchain future go through the below possible links.