What is Blockchain Technology guide, Crypto tips, Bitcoin and cryptocurrencies advice, Digital currency

Advantages of Blockchain Technology Guide

19 Jun 2021

The Blockchain is a globally distributed database that is entirely decentralized, which means it has no main man or boss; it has no controller. Unlike common databases, such as SQL database, no one at the top or in control can change the entries. Though programmed, yet it is entirely decentralized.

This technology first came into existence in 2008 as there had been different trials to create digital currencies in the past, which has consistently failed. The reason for the failure, chiefly, being trust. The arrival of Bitcoin solved this problem.

Advantages of Blockchain Tech

It is vital that you know Bitcoin isn’t Blockchain. Bitcoin is a digital currency that is allowed and kept alive on the technology called Blockchain. Other cryptocurrencies are kept alive on this technology. Cryptocurrencies running on blockchain technology are entirely decentralized. Cryptocurrencies can’t be tampered with as they exist only in a digital form.

Who invented Blockchain Technology?

Blockchain technology was invented by a person (or group of people) using the pseudonym Satoshi Nakamoto. Though anonymous, there is no need to track the inventor(s) down; there is no need to infiltrate their anonymity as the inventor(s) doesn’t have any control whatsoever of the Blockchain technology or Bitcoin.

Advantages of the Blockchain Technology.

Immutability

Any record validated on this technology cannot be changed.

Decentralization

The technology takes away central control of the cryptocurrencies by a person or group of people.

Secure

Transactions carried out on Blockchain technology are proven to be secure as the technology depends heavily on cryptography. You can also securely trade with trading bots like Bitcoin Rush and others without the fear of your digital currencies being lost.

Trustless System

You do not need to hold transactions till you trust each other or a third party for the system to function. This technology has a mechanism in place by which all parties can reach an agreement.

Disadvantages of Blockchain Technology.

High consumption of energy

Every time a ledger is updated with new transactions, they spend a lot of energy in the quest for miners to solve the problems.

Loss of Funds

A private key is generated during the process of creating your wallet. If you forget your private keys, you lost access to your wallet forever.

Cost of Implementation

The cost of implementing blockchain technologies is enormous. For example, the cost of implementation of an enterprise blockchain project can go over a million dollars.

Is the Blockchain a better choice?

Looking at Blockchain technology, it has its pros and cons. What advantage does it have over the Local banking system? The significant advantage of blockchain technology is the fact that it is decentralized. The banking system is tried and trusted as it has existed for decades; the Blockchain isn’t mature as it is just over a decade. The security of the banking system is weaker. Your funds are safer on a blockchain than your local bank. Banking transactions can be slow and expensive.

Of a truth, it is challenging to choose which one is ideal, as they each both have their strengths and weaknesses. We really can tell if the Blockchain is a better choice as it poses some risks also.

Conclusion

Blockchain technology is a revolutionary technology that has the potential to change almost every industry. Countries like Australia, China, Japan, United Arab Emirates have embraced blockchain technology. However, we are not sure about the future of this technology as it has some flaws.

For example, the decentralized nature of Blockchain means it has very little regulation, and this opens the door for illegal activities like money laundering activities, funding terrorist activities, among many. Therefore, it poses a threat to governance.

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