Blockchain is a growing technology that as helped businesses helm their financial transactions and revolutionise the way they store data. However, it comes with its own list of pros and cons that firms must consider before implementation.
FREMONT, CA: The 21st century has primarily driven several technological practices, and the financial world is not necessarily untouched by it. Blockchain has emerged as a digital leader to cater to all kinds of transactional leads, offering a safe and secure harbor.
A blockchain is a tech tool that facilitates the transfer of digital currency, for instance, cryptocurrency, and other similar assets. It has played a pivotal role in advancing the usage and reach of cryptocurrency by offering multi-fold benefits.
Offers Transparency- It offers unique transactional transparency that is absent in traditional mediums, and is commonly termed as an “incorruptible digital ledger” or record. It paves the way for verification without the need to rely on external or third parties.
Maximum Trust Verification- All transactions and detailed parts of the block secured by protected cryptography shall take its entry only after the maximum trust verification. Every participant will have a say in what all recorded in the ledger. Additionally, there would not be an alteration in the data or deletion due to the append-only feature.
Decentralization- Another unique feature of blockchain is the decentralization of data, where data transactions are stores in millions of devices partaking in the chain. Therefore, recovering lost data is as easy as a breeze.
While there is an evident upside to it, blockchain comes with its fair share of drawbacks. Industry experts have pointed out that blockchains often become overhyped. Businesses are advised to strategically evaluate their company needs, to ascertain if blockchain is indeed feasible for them. Few might not even see the returns in the initial years.
Although it is far into the mainstream, blockchain should be not be trusted blindly. Even with a complex algorithm, there is always the chance that hackers can use the most advanced technologies. Sometimes the stored data might not be agreeable or trustworthy to all participants.
Although the pros outweigh the cons, the current market climate is still acclimating to the changes brought about by cryptocurrency. They are still restricted optimum exposure required for blockchain tools to thrive.