Blockchain, as the name states is a chain of blocks. The blocks are linked to each other, and every block contains a timestamp, transaction data and a cryptographic of the previous block. The blockchain technology allows the information to be digitally distributed but not copied. Also, Blockchain does not allow the modification of data. Blockchain can also be referred to as a record book as its ability to store the data like we store the information in the records.
Advantages of using Blockchain
There is a reason why blockchain technology has become one of the popular technologies in recent years. Here are a few benefits of using Blockchain technology
By using Blockchain, there is no point of technical failure as the data os blockchain is stored in several devices on a distributed network in the form of nodes. Every node holds the information of the database and can replicate it so there will not be any issues regarding the failure due to a single node going offline
The primary benefit of using blockchain technology is it provides transparency. The transaction notifications are immediately sent to both the clients and banks, which is secure and trustworthy. By getting instant notification, the clients or the customers find it convenient to use it further.
The data entered in the Blockchain can not be copied or modified. So it a very reliable technology to store the files related to finance and other confidential information. The primary reason for the popularity of blockchain technology
Using Blockchain, every transaction is made public, so there are zero possibilities of fraud. Minors monitor every transaction, and there is no chance of fraud to take place.
Disadvantages of Blockchain
Apart from the advantages, there are also significant drawbacks in using blockchain technology. Here are a few disadvantages of using the blockchain technology
Blockchain requires a massive amount of electricity. It is considered as wastage to spend a lot of power when the outcome is not equivalent to the energy consumed. Many industries make use of Blockchain. With the increase in the usage of Blockchain, the consumption of electricity also increase.
Blockchain is too complex to use, even though there are many advantages of using blockchain technology. There needs to be a thorough understanding and research before starting to use it or else there are more chances to mess up things.
The average cost per single transaction is very high, and this is one of the significant drawbacks of blockchain technology. As per the recent study, it is stated that the transaction cost for each bitcoin is between $80-$150. That’s definitely a high-cost right?
Hard to Use
People who are familiar with technology have no problem using Blockchain technology for digital currencies, but what about people who are bad at technology? They find it damn hard to use it, so It is not suggested for people who are not tech-savvy.
These are a few advantages and disadvantages of using Blockchain. We will also see the industries that are using Blockchain technology and how Blockchain works. Let me know your feedback in the comments below or drop a message here. I am open to suggestions.