The pros and cons of blockchain technology have been the cause of many discussions.
Ten years ago, legacy systems ruled. Then from nowhere, a little-known programmer introduced a new technology system. Satoshi Nakamoto completely redefined how computing works.
Centralized technologies before now ruled. The current battle between distributed ledger technologies (DLTs) and legacy systems has led many to consider the pros and cons of blockchain technology implementation.
A side-by-side contrast and comparison of these will produce a final verdict. Let's consider the bad news first.
The Cons of using Blockchain Technology
Blockchain technology is new technology. And the DLT space is already facing all the issues that come with new technologies.
The first con is the cost. Getting new technologies off the ground can cost a ton of money. The reason for this is that very few people know about new technologies. Thus, the costs of development will be extremely high.
Early adopters get discouraged because of this. They get out of the game before the technology becomes gains traction.
New technologies are inefficient at first. It can take many years of refining and recoding of several components to get some form of efficiency. This process can be a drag on time and resources.
In terms of storage, distributed ledger systems get rather large very quickly. The astronomical rise in data of distributed ledgers can require frequent hardware upgrades. This can be counterproductive for may blockchain systems.
Blockchain systems are immutable. This means that once a record is filed it cannot be changed. This can be frustrating when mistakes are made in records and need alteration.
The security of access credentials can be problematic as well. The private keys of many Bitcoin holders can get lost. Such wallet contents remain indefinitely inaccessible. Blockchain users become wary of how to store their keys securely.
A majority attack is another problem. Theoretically, a node majority is all that is needed to overcome consensus. This issue hasn't received much scrutiny as far as the pros and cons of blockchain technology are concerned. This attack on consensus is still hypothetical. Many people think that the possibility exists and is always looming.
The Pros of Using Blockchain Technology
The pros of blockchain technology are many. Firs on the list is the use of trustless technology. Trustlessness allows people to work without the need for central authorities to confirm transactions.
Centralized authorities are prone to bias and fraud. Trustless systems eliminate such bias and limit fraudulent transactions to a high degree.
The decentralization of blockchain technologies allows for the continuous operation of blockchain systems. Blockchain systems aren't subject to shut down due to glitches or a hack.
There are many nodes on a single blockchain. Unless there is the total annihilation of the nodes, the blockchain will likely continue to go on functioning.
The immutability of blockchains can also be an advantage. Records are permanent on blockchains and aren't subject to manipulation. This gives rise to greater credibility in the digital era.
Furthermore, blockchains can go global faster than any other technology can. A blockchain deployed today can be deployed in several countries in mere minutes as opposed to centralized systems.
In a final weighing on the pros and cons of blockchain technology, the pros outweigh the cons. The total domination of blockchain technology will occur in time. And mother time is the final decider of all things.
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