Blockchain: Advantage, Disadvantage, and, Future

Blockchain: Advantage, Disadvantage, and, Future

In recent years, you may hear about blockchain or blockchain marketing. If you heard the term cryptocurrency then you definitely heard about blockchainBlockchain is the record-keeping technology behind cryptocurrency.

What is Blockchain

Blockchain is complicated, but its core concept is really quite simple. A blockchain is a type of database. To be able to understand blockchain helps to first understand what a database actually is.

Blockchain: Advantage, Disadvantage, and, Future

A database is a collection of information that is stored electronically on a computer system. Information, or data, in databases is typically structured in a table format to allow for easier searching and filtering for specific information. 


How is Blockchain Used

As we all know, blocks on crypto blockchain store data about monetary transactions. But it turns out that blockchain is actually a reliable way of storing data about other types of the transaction as, well.

Some companies that have already incorporated blockchain include Walmart, Pfizer, AIG, Siemens, Unilever, and a host of others. For example, IBM has created its Food Trusted blockchain to trace the journey that food products take to get to its locations.

Using blockchain gives brands the ability to track a food product's route from its origin, through each stop it makes, and finally, its delivery. If a food is found to be contaminated then it can be traced all the way back through each stop to its origin.

Blockchain: Advantage, Disadvantage, and, Future

Advantage of Blockchain

The basic advantages of blockchain are transparency, immutability, security, and decentralization. Blockchain technology allows verification without involving third parties. The data structure of blockchain is append-only. So it can not be deleted or altered.

Disadvantage of Blockchain

The main disadvantage of blockchain is the high energy consumption required. Its integration process is complicated and implementation is costly. Blockchain is not secure completely. It can not go back.

Future of Blockchain

While looking to the future of Blockchain it extremely exciting and new innovation constantly entering the market promising bigger and bolder use of technology. As active blockchain networks continue to bring real transformative change for industries.

IBM team predicted five trends near future:

1. Pragmatic governance modal will emerge.

2. Interconnectivity comes one step closer to reality.

3. Adjacent technology combines with blockchain to make next-level advantages.

4. Validation tools will begin to combat fraudulent data sources.

5.  Central banks combine into wholesale and retail central bank digital currency. 

Many companies across the world might also use blockchain technology and in the future, most companies will use blockchain technology.

Also Read: Cryptocurrency: History and Work

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