Blockchain has become one of the most written and talked about ‘tech concepts’ now. It is, therefore, worth having some insights as to what blockchain entails and this article will detail the advantages and disadvantages of this technology and provide you with some clear guidance as to whether this is something that you can use for your business, at work and even in your personal life.
Advantages
Based on Open-Source Software
One of the main advantages of blockchain tech is that the software is open source. There are, therefore, no permissions needed for those joining the network and using the technology to store, save, and secure your data and crypto.
Heightened Security
The distributed ledger technology that is blockchain can provide a level of security that has not been seen before. It is based on consensus for authentication and cryptography to secure all data on the network. It is also such that each block in the chain is related to the next one in a manner that eliminates any chance of fraud and adversely affects the stored data.
Decentralized Network
The stored information or blocks are all stored on a distributed or shared network and, as such, they cannot be adjusted without others being aware of this.
Versatility
Blockchain may have initially been invented to underpin and structure the cryptocurrency Bitcoin, but since its inception, it has been used for a variety of other processes and database functions.
Disadvantages
Has Been Somewhat Complex
From its earliest inception, the term Blockchain and the associated tech advances have arguably been taken too seriously. The language used has been complicated and saturated with tech speak. This has had the effect of dissuading many from getting involved.
Anyone Can Create a Cryptocurrency
Yes, it is an advantage of sorts that anyone who has the inclination and the ideas of fintech innovation has been able to theorize and design their own crypto. However, of the 20,000 or so cryptocurrencies, there are probably only a few that we know and relate to.
Slightly Slower
Blockchain may currently be slightly slower than the traditional database, but on the upside, this is because it is required to do so much more authentication of the user. It is also the authentication or proof of work, public verifications that take too long in some instances. Hence, the development of Cosmos, which is a blockchain solution that developed the proof or stake protocol which goes a long way to improving the speed of verification and allowing transactions to proceed delay or hitch-free. Read more at https://www.okx.com/learn/what-is-cosmos and ensure you understand how the proof of stake differs from the proof of work.
This article clearly shows that the blockchain technology that we can use and interact with for both business and personal reasons is at the cutting edge of the metaverse and its associated structures, financing, and online purchasing power. It is worth keeping an open mind as to whether you can use it and articles such as this one should prove a great starting point in this regard.
