Top Issues With Blockchain Technology

Blockchain is the newest catchword in the industry, that’s creating quite a buzz. It’s considered best for all those entities who appeal for transparency in their financial transactions. However, as contemplated by industry experts, it’s not exactly the answer to most financial/economic issues found worldwide.

Understanding Blockchain

The term ‘Blockchain’ may sound similar to Bitcoin as many people often interpret blockchain as cryptocurrency. However, there is a world of difference between these two. Blockchain is ‘a person-to-person accounting system’ whereas cryptocurrency is ‘a product that runs on this system’.

Let us elucidate through the following example: there are three people, who are strong individuals and quite capable of working independently. However, if these individuals want to perform regular transactions, they need a central payment channel. Nonetheless, if they do not want to work with a central authority and want to perform transactions autonomously and directly with each other, they can do so, with each individual acting as a bank.

What’s more, in this distributed ledger technology, the connected peers hold a copy of the ledger. While this sounds quite easy, adopting blockchain technology has its own set of challenges. Although crypto is believed to be the most common use of blockchain, it is not limited to digital coins only. There are some blockchains, which distribute all sorts of data, from videos to images and pictures to documents and even tokens, among many others.

How to Use Blockchain to Your Advantage?

Although more people are aware that Bitcoin’s monetary data is mostly stored on Bitcoin’s blockchain, they are unable to understand the concept behind the blockchain altogether. Blockchain is a system that stores all sorts of data and may involve other kinds of transactions, besides the usual monetary ones. Some corporate organizations such as AIG, Walmart, Unilever, Pfizer, Siemens, IBM, among countless others have already incorporated blockchain.

For instance, IBM established the Food Trust blockchain to sketch the entire journey of both their popular and average food items from the start location to the end place. The reason behind employing this process is that numerous viruses have accidentally taken place as the food was transported from the source origin to the final destination. While in the past, the company was unable to figure out the source of such outbreaks. But utilizing the blockchain to their benefit, the brand was able to track the entire route of their food items, including stops, pauses, retracting of material goods, etc.

So if a food item became contaminated along the way, it was easier to track its journey and figure out at which point, the contagion started. This allowed the company to identify the problem far more quickly than expected. Although this is just a basic advantage of blockchain technology, there are many disadvantages associated with the concept as well.

Top Issues with Blockchain Technology

Blockchain technology is a growing phenomenon and is slightly above its infancy stage, that’s why multiple issues have been faced by users, who believe that this piece of technology will transform the world in one go! Read on to find out which blockchain issues are faced by users:

Scalability and the Speed of Each Transaction

Among the top drawbacks of using blockchains is the issue of scalability. Since each user node needs to authenticate and support each transaction, the exchange can often take quite a lot of time. However, this is even more aggravated if the speed and storage of each network node are not the same. In such a case, contact the respective Internet providers, especially if the speeds vary drastically.

For instance, if you are depositing a check on Wednesday and it reaches you on Saturday, then you need to acquire a blockchain such as the Ethereum blockchain to provide you with speeds, that is expected to increase rapidly within the year.

Lack of Privacy and Absent Regulations Leads to Deficient Security

The information present on a block is anonymous yet encrypted and is available to all nodes in the arrangement. So although all users have rightful access to data, the identities of each user could still be tracked. This means that blockchain is not as secure as is usually claimed. What’s more, blockchain tech still needs to lay down regulations, if it needs to reduce privacy breaches. The absence of such provisions will only end up hindering its growth and widespread adoption, which continues to grow despite the cons, that keep popping up now and then.

Furthermore, if a node in a network is a lie, then users of the other nodes will have to accept it as the truth. Therefore, if you want to have information in the node network that’s legitimate and highly authentic, these challenges need to be addressed and resolved as quickly as possible.

Although blockchain technology is a dual-edged sword, which has both advantages and disadvantages for its target audience. Hence new users, need to be aware of the outcome if they implement this technology on a supposedly large scale. Just like other pieces of technology, blockchain is also not perfect and the fact that the data contained in the blocks is unchangeable does pose a problem, especially since errors can alter the entire network in a flash.

Furthermore, the anonymity of the user may be an asset, but that’s only because the user has trust in the other users that are a part of the chain. However, the opacity has often led to many users committing illegal acts as it is difficult to track such transactions. Blockchain technology is in the process of continuous change and revision and will present challenges along the way. That’s why before you think about adopting this piece of technology, you should be aware of both its pros and cons.

Nonetheless, the internet still plays a very important role in Blockchain technology. That’s why it’s important to ask your provider if they are open to the new technological changes and then alter accordingly. If that’s not even a possibility, visit BuyTVInternetPhone and invest in a service that’s fast, reliable, and highly accessible in the main business area.

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