"PROS AND CONS OF BLOCKCHAIN"

in #blockchain7 years ago

Hey everyone! So this is my second article on blockchain. In the first
one, i talked about what blockchain was. Don't forget to check that out.
The link would be present at the bottom.
So today I would be writing it's advantages and disadvantages and it is
so intriguing.
https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjBvbu5z93UAhVErY8KHemkCm8QjRwIBw&url=https%3A%2F%2Fwww.extremetech.com%2Fextreme%2F226832-could-the-bitcoin-blockchain-one-day-run-your-entire-city&psig=AFQjCNFw2FGdZSjABiXeVKRoNimMliVRcw&ust=1498638631563155

ADVANTAGES

  1. NON CENTRAL CONTROL: There is no administrator or a third party
    controller of blockchain. Rather than having some centralized
    application logic, blockchain transactions have their own proof of
    validity and authorization to enforce the constraints. There is no
    recording of data on a central server and instead of storing data with
    some people(servers), it just uses a database locked by cryptography. So
    the chances of corruption of data are highly reduced.
    Also the third party control of data uses a lot of money and people for
    recording and security of data. In contrast, blockchain does not have
    such hassles.
  2. USERS IN CONTROL:Users are in control of their info and transactions
    as there is no intermediate in between.
    3.HACKING RISKS REDUCED: The information on blockchain is available to
    everyone. so that reduces the need of a hack. Also the blocks are saved
    using clever cryptography. So that also reduces the risks of tampering
    with the data.
  3. HIGH QUALITY DATA:Blockchain data is complete, consistent, timely,
    accurate, and widely available.
  4. TRANSPARENCY: The data is widely available and the data cannot be
    altered with. Any changes are also viewed publicly.
  5. LOWER TRANSACTION COSTS
    By eliminating third party intermediaries and overhead costs for
    exchanging assets, blockchains have the potential to greatly reduce
    transaction fees.
    https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjQhsidzt3UAhWJp48KHZ9EDWMQjRwIBw&url=https%3A%2F%2Fbetanews.com%2F2015%2F12%2F28%2Fthe-benefits-of-blockchain-for-financial-services%2F&psig=AFQjCNFw2FGdZSjABiXeVKRoNimMliVRcw&ust=1498638631563155

DISADVANTAGES:

  1. VERIFICATION: Every blockchain transaction must be digitally signed
    using a public-private cryptography scheme. This is necessary because
    transactions propagate between nodes in a peer-to-peer fashion, so their
    source cannot otherwise be proven. The generation and verification of
    these signatures is complex, and constitutes the primary bottleneck in
    products. By contrast, in centralized databases, once a connection has
    been established, there is no need to individually verify every request
    that comes over it.
  2. Every transaction should be processed by each and every node and
    this takes a lot of work.
  3. SOCIAL ACCEPTANCE: the public is very slow to accept such things as
    there is no regulatory authority. So people are very reluctant in
    accepting this. bitcoin got introduced in 2009 but still it does not
    have a wide audience. Governments are very critical of such things as
    they feel that their powers and currency would be limited.
  4. CONTROL, SECURITY AND PRIVACY:
    While solutions exist, including private or permissioned blockchains and
    strong encryption, there are still cyber security concerns that need to
    be addressed before the general public will entrust their personal data
    to a blockchain solution.
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