Like all forms of technology, blockchain has several advantages and disadvantages to consider.
One major advantage of blockchains is the level of security it can provide, and this also means that blockchains can protect and secure sensitive data from online transactions. For anyone looking for speedy and convenient transactions, blockchain technology offers this as well. In fact, it only takes a few minutes, whereas other transaction methods can take several days to complete. There is also no third-party interference from financial institutions or government organisations, which many users look at as an advantage.
Blockchain and cryptography involves the use of public and private keys, and reportedly, there have been problems with private keys. If a user loses their private key, they face numerous challenges, making this one disadvantage of blockchains. Another disadvantage is the scalability restrictions, as the number of transactions per node is limited. Because of this, it can take several hours to finish multiple transactions and other tasks. It can also be difficult to change or add information after it is recorded, which is another significant disadvantage of blockchain.
IMPLICATIONS OF BLOCKCHAIN TECHNOLOGY
Blockchain technology has made a great impact on society, including:
World Economy. Bitcoin, blockchain’s prime application and the whole reason the technology was developed in the first place, has helped many people through financial services such as digital wallets. It has provided microloans and allowed micropayments to people in less than ideal economic circumstances, thereby introducing new life in the world economy.
Concept of Trust. The next major impact is in the concept of Trust, especially within the sphere of international transactions. Previously, lawyers were hired to bridge the trust gap between two different parties, but it consumed extra time and money. The introduction of cryptocurrency has radically changed the trust equation. Many organisations are located in areas where resources are scarce, and corruption is widespread. In such cases, blockchain renders a significant advantage to these affected people and organisations, allowing them to escape the tricks of unreliable third-party intermediaries.
Internet of Things. The new reality of the Internet of Things (IoT) is already teeming with smart devices that turn on your washing machines; drive your cars; navigate your ships; organise trash pick-up; manage traffic safety in your community – you name it! This is where blockchain comes in. In all of these cases (and more), leveraging blockchain technology by creating Smart Contracts will enable any organisation to both improve operations and keep more accurate records.
Verified Payments. Blockchain technology enables a decentralised peer-to-peer network for organisations or apps like Airbnb and Uber. It allows people to pay for things like toll fees, parking, etc.
Sensitive Data. Blockchain technology can be used as a secure platform for the healthcare industry for the purposes of storing sensitive patient data. Health-related organisations can create a centralised database with the technology and share the information with only the appropriately authorised people.