In today’s world, technology has reached a stage of development where it evolves by the day. In the era of cryptography and E-cash such as Bit Coin, Blockchain is a trending topic. For starters, it’s a ledger system that uses a record that’s open and distributed top keep track of transactions – transactions in this scenario can mean cryptocurrencies, medical records, voting/home records and much more.
Blockchains have quite a few benefits, some of which are mentioned below:
One major benefit of a blockchain is the level of encryption it offers. Since data is transmitted using blockchains, it’s encrypted automatically from the second it’s written. It’s very secure than the conventional ID-Pass system. Alas, the large-scale security factors to consider, come from its wide global array of users.
In case of a breach in by hackers, it’s very simple to identify if a block has been tinkered with due to the incredible hash functions. These hash functions are added from block-by-block. Anyone attempting to alter a block will have to deal with all its amazing safety measures going off, thanks to the hash, which will result in a caveat and a complete shutdown of the block.
Decentralization of a Specified Block And Smart Contracts
Another benefit of having a blockchain is the decentralization process and the smart contracts. At this point in time, smart contracts might be the most powerful utilization for a block chain. Essentially these contracts use blockchains to automate and transfer payments based on a set of pre-made conditions. Using a smart contract, you could pay your electricity bill once it reaches a specified number of units. No more hassle of dealing with late fees, it’s all taken care of automatically by the blockchain. The transaction to the electricity company will be sent directly and be verified by the blockchain.
The Overall Efficiency And Speed
A blockchain’s overall speed and efficiency are highly remarkable, making it a third benefit of this technology. A person no longer has to go through with the tedious task of manually entering in data and the entries being prone to human error. Many organizations of today maintain a large array of records for numerous tasks. However reviewing these records is quite time consuming, for a smaller organizations, but with a blockchain , information gets written, gathered and verified, as it’s generated.
This technology has many benefits, but it’s still under development which means it has its fair share of drawbacks too, mentioned below:
The Safety of a Blockchain
While the safety of a blockchain is impenetrable, the blockchain itself hasn’t been in the market long enough to leave a mark. It hasn’t won the people’s trust and confidence.
Lending And Borrowing
The whole process behind lending and borrowing is very tedious. There a lot of paperwork involved and the background checks along with the standard check, is very time consuming.
With todays modern computers, it takes an average of 25 minutes to complete a trade deal, that is a lot of time in the crypto world. The rates of the E-cash can skyrocket or plummet during this time period.
In conclusion, with all the pros and cons in mind, the engineers and organizations behind the scene need to improve the system and implement the viable courses of action. The technology has the potential to cater a global audience, it’s just a matter of when.