With the invention of blockchain technology, there are numerous changes we all have seen these days. Every business and industry is leveraging its advantages but always keep in mind that every coin has two sides and sometimes it negative too. After being a decentralized digital ledger system, it has a considerable difference from the traditional centralized databases.
These differences are visible in their operations too. Therefore to give you an explanation of the blockchain technology pros and cons we have done the research. This blog is all about explaining the plus and minus sides of blockchain technology.
What is Blockchain Technology
The blockchain is an inseparable digital ledger that keeps track of the economic transaction which can take place and it not only maintain only banking or financial transactions but also everything virtually that has value. Now it merely means that blockchain technology is a digital ledger that is not maintained or controlled by any government or financial institute.
It can be accessed by anyone who has excellent internet connectivity. Not only the virtual currencies, but there are also many big enterprises and companies like ride-sharing, cloud storage, messaging apps, etc are misusing the power of blockchain technology.
Pros of Blockchain Technology
Since blockchain technology came into the market in recent times, we all have seen and observe the market with its great advantages. There are some pros of blockchain technology that proved its importance and growth.
Before the introduction of the blockchain, the traditional banking system process takes a lot of time and efforts took place for making a small transaction but after the introduction of the blockchain technology, the speed of the traction increased to a very high level. After the blockchain technology, the time reduced to nearly minutes or even seconds.
The format of the blockchain designs in a way that makes it easy to locate any problem and correct it as soon as possible. It also creates an irreversible audit trail.
We all know that blockchain technology is a highly secured way and because of this reason each and every individual who enters into the blockchain network is provided with a unique identifier that is linked to his account. This makes sure that the owner of the account operating the transactions.
Lower Transaction Costs
through the third-party intermediaries, the removal of the exchanging assets enables the blockchain to greatly reduced transaction fees.
Cons of Blockchain Technology
Blockchain technology is indeed a godsend for the new world. Researchers show that there is some kind of cyber attacks are also happening against blockchain technology today. Let’s take a look at the cons of the technology
On average, the cost of every bitcoin transaction goes up to $75-160 by energy consumption. Every bitcoin network client saves the whole transaction history, it becomes as large as 100 GB. the more transactions take place the faster size grows.
Uncertain regulatory status
You go anywhere in the world, each and every part of the modern world, the money of the whole economy is maintained and controlled by the central government of a particular country. But blockchain is becoming an obstacle for bitcoin to get acceptance by the financial institution worldwide.
There are many cryptocurrencies that are used to decentralized the blockchain are very volatile. Investors, governments, and businesses are trying to decide whether they should adopt blockchain technology or not which can cause a lot of volatility.
Every person has their own perspective and blockchain also has both pros and cons like the two sides of the coin. There are many sectors that are enjoying the perks of blockchain technology and some are afraid of using it. So, in short, it depends on you, your product, your business that decides that you should use blockchain technology or not.
Till then, stay safe, stay at home, wash your hands, and be happy
For more updates, stay connected and keep reading