BlockChain is an innovation of technology that has taken the world by storm and revolutionized the concept of digital transactions. Primarily associated with Bitcoin, BlockChain technology has more tricks under its sleeves. According to popular definition, this chain is a storage space where transactions are stored in form of blocks which are interconnected in the form of chain; hence the name, BlockChain. It is also referred to as ‘Append-only data store’; that means you can only add data to the bank but cannot take it away. (Tennison, 2015)
It is quite clear that this technology is providing its users with fool proof secure storage of valuable data. Here, we are going to discuss many aspects of its burdens and benefits in this blog post, so brace yourself up for all the fun!
The Benefits of BlockChain Technology
The Brightside of this new horizon!
- No Third Party
BlockChain technology provides peer-to-peer communication and transfer of data is done without interference of third party. This reduces, even eliminates counterparty risk. This ensures the safety of your valuable data. (Blockchain technology: 9 benefits & 7 challenges, Disrupting multiple industries)
The data stored through BlockChain technology cannot be tampered with, changed or deleted once it’s fed in the system, as it is Append-Only Data Store. This makes your information secure and can’t be manipulated by malicious entities. Every transaction that happens and the changes to a public Chain are viewable publicly.
- Perfect Space For Internet Of Things Registry
BlockChain provides an automatic storage space for the ownership and maintenance information of IoTs you have in your name. The data transmitted through IoTs is a Big Data that needs secure storage and what better place than a BlockChain? It will keep the data flowing through your IoTs safe from being manipulated all the while keeping it stored and secured.(McKendrick, 2016)
The Burdens of BlockChain Technology
The other-side of the coin!
- Energy Consumption
The first and very alarming drawback of BlockChain technology is the amount of energy it consumes to operate. Its computing power needs to process only Bitcoin is equivalent to the power used by fastest 500 supercomputers combined. This is a phenomenal figure we are talking about and it is not eco-friendly, least to say. (Macaulay, 2016)
- Illegal Information
Being a public entity, any illegal data stored in BlockChain can make the entire system illegal making every user to be part of an illegal setup. This becomes a big problem for the law to tackle the real culprit. This vulnerability of the system is yet to be addressed. (Macaulay, 2016)
The volume of business done through BlockChain is growing by the minute and this eventually is slowing down the processing time of the technology. The average time taken by Bitcoin transaction is 43 minutes. And while making payment at the shop, this long time of processing of data and verification is completely impractical idea. (Street, 2016)
Like any technology ever surfaced or introduced, this tech holds its advantages and disadvantages. So anyone can analyse his needs and scope for deciding whether to use it or not. It is totally dependent on an individual or company’s needs and capacity.
Blockchain technology: 9 benefits & 7 challenges, Disrupting multiple industries. (n.d.). Retrieved July 8, 2017, from Deloitte: https://www2.deloitte.com/nl/nl/pages/innovatie/artikelen/blockchain-technology-9-benefits-and-7-challenges.html#
Macaulay, T. (2016, Nov 09). BlockChain limitations: Is the distributed ledger technology overhyped? Retrieved July 08, 2017, from Techworld: http://www.techworld.com/startups/what-are-limitations-of-blockchain-experts-from-odi-explain-3648881/
McKendrick, J. (2016, May 14). 6 Reasons to love blockchain technology. Retrieved July 8, 2017, from ZDNet: http://www.zdnet.com/article/6-reasons-to-love-blockchain-technology/
Street, S. L. (2016, March 06). Limitations of Blockchain Technology. Retrieved July 08, 2017, from LEXOLOGY: http://www.lexology.com/library/detail.aspx?g=98e6a1ba-35a1-4750-b444-2e5bf2ddd7ff
Tennison, J. (2015, November 12). What is the impact of blockchains on privacy? Retrieved July 8, 2017, from Open data institute: https://theodi.org/blog/impact-of-blockchains-on-privacy