Pros and cons of blockchain technology

Speaking of blockchain, most people link it to the crypto industry. Actually, this concept is much broader and has wide application in various fields such as healthcare, legal practice, and even election-related technologies.

Pros and cons of blockchain-technology

Basically, blockchain is the technology for collecting data. Some experts compare the end use of blockchain to a ledger. Unlike a ledger kept by a business, the data entered in the public ledger can never be removed. The information can no way be erased. Such information in a digital form is available for public access. It looks like an uninterrupted stream of data which is updated as soon as new items are added.

Let’s take Bitcoin as an example. Unlike fiat money, any crypto cannot be stored as physical cash. Therefore, a decentralized database is the only neat solution in this case.

The blockchain concept rests on a few basic principles. The first advantage is transparency.

The digital ledger expands its list of records as soon as users carry out new transactions. The ledger contains such entries as dates, bills, names of transaction participants, electronic signatures, etc. However, information recording is not the only feature of this technology. Some blockchains are employed to develop software or smart contracts.

All in all, there are two types of blockchains: public and permissioned. In the first case, anyone has free access to it from a PC. The second type is available to selected and verified participants. Each type is meant for a particular purpose. Some companies create a tailor-made blockchain for their needs, but it is a costly practice and does not always make sense

Another advantage of blockchain technology is its utility to recognize counterfeit goods. A company applies the technology to safeguard its brand identity whereas customers are confident in the merchandise’s authenticity.

Nevertheless, blockchain technology is not free from some faults, such as: ⁃ It does not ensure the same high capacity of data processing as a centralized database; ⁃ Humongous memory is required for its efficient operation; ⁃ Once data is entered into the ledger, it can never be corrected. This clearly positive feature serves as a disadvantage in some cases.

To sum up, blockchain is a modern technology intended for transparency and high-quality transactions and products.