Pros and Cons of Blockchain Technology
When it comes down to it, the pros of blockchain highly outweigh its cons. Blockchain provides improved accuracy through the removal of human involvement within the verification process. The costs are also reduced through the elimination of any third-party verification need.
The decentralization also makes them a lot harder to be tampered with. Each and every transaction is also fully secure, fully private, and extremely efficient. Best of all, blockchain provides a banking alternative and a way to secure personal information for people of countries with underdeveloped governments.
When it comes to the cons of blockchain, it has significant technology costs when it comes to its associated use in terms of mining Bitcoin, Ethereum, or any other type of cryptocurrency. It has low transactions per second, and it has regulatory issues in many parts of the world.
Blockchain technology is advantageous in the way that the transactions on the network are approved by a network of thousands of computers. This removes any human involvement within the verification process and as a result, you have less human error as well as a perfect record of the information.
If a computer on the network would make a mistake, the error would only be made to one copy of the entire blockchain. For this error to spread, it would need to be made of at least 51% of the network’s computers which is an impossibility.
Blockchain also reduces costs associated with payments. Within a traditional payment system, customers pay a bank to verify a transaction or a notary to sign a document. Blockchain eliminates the need for this third-party verification and as a result, it also eliminates all of the costs associated with it.
Blockchain does not store any of the information in a central location and is fully decentralized. The blockchain itself is copied and spread across a wide range of computers. When a new block is added to it, every computer on the network updates its blockchain in order to reflect upon this change.
Keep in mind that, while blockchain can save users money on transaction fees, the technology itself is expensive. The proof of work system that Bitcoin uses costs a lot of computational power, and as such, miners rack up immense power bills.
To sum this up, from an original research project in 1991 to the behemoth that it has become today, blockchain technology has truly evolved and is here to stay.