For many, blockchain is exclusively associated with the crypto industry. However, in reality, this concept is broader and applicable in various sectors such as healthcare, jurisprudence, and even during elections.
Advantages and Disadvantages of Blockchain Technology
In short, blockchain is a data collection technology. Some people compare the end result of blockchain to an accounting ledger. But unlike the latter, data cannot be removed from these records, they remain there permanently, and the information cannot be erased. This information is presented in digital form and is publicly accessible. It is a continuous chain of information that is recorded as product data is updated.
An example is Bitcoin. Unlike conventional money, crypto cannot be held in hands. Therefore, a remote database in this case is the only optimal solution.
From the basic concept of blockchain, we can immediately identify its first advantage - a guarantee of transparency.
This digital ledger accumulates data as new transactions occur. It stores dates, checks, names of transaction participants, and electronic signatures. But recording information is not the only function of this technology. There are blockchains for writing software or smart contracts.
There are two types of blockchains: open and closed. The former is accessible to anyone with a personal computer, while the latter only to the administrator. Which one to use depends on the purpose. Some companies develop blockchains specifically for themselves. But this is costly and not always sensible.
Another plus of blockchain technology is that it helps detect forgeries. Companies use the technology to protect their brand (authentication), and the buyer is assured of the authenticity of the product.
Speaking of the disadvantages of the technology, the following can be highlighted: ⁃ not as high performance as a centralized database; ⁃ requires a lot of memory for adequate operation; ⁃ impossibility of data correction (this advantage can also be considered a disadvantage in certain cases).
Overall, it is a modern technology that promotes transparency and high quality in transactions and products.