As with any new technology, you will discover there are pros and cons for blockchain-tech. Blockchain gives numerous advantages, yet it has disadvantages also. Understanding both is crucial for making the right decision when evaluating a certain cryptocurrency investment. Blockchain is no different from other new technology, the advantages it offers come at a cost. There are some cons to the blockchain that must be well considered in order to conclude if blockchain is a wise choice.
Pros of blockchain technology are:
• No involvement of a 3rd party (central authority)
In a decentralized network, there no central server to authenticate and authorize transactions between peers/users.
• Double Spend Problem
Blockchain is the first technology capable to solve the Double Spend Problem without having to trust on 3rd parties, such as governments.
• Transparent & Verifiable
Accountability to clients and (end)-users, even without permission
Control who sees which data and when with a permissioned network
• Quality Control
Track the backgrounds of all supply chain components. Smart Contracts replacing the middle men.
• Reducing Transaction Costs
Removing middle men reduces cost (example: payment-providers, banks & other financial institutions)
Produce exchangeable tokens supported by real value
Partly Asset Ownership and Asset Digitization (example: own 1 house for 100%, or own 2 houses for 50%)
• Extremely Fault Tolerant
If a single node loses connectivity to the network it would remain working by other nodes in the network, which will take over his work. Compare it with a group message, if you want to delete a message in the group you will need to delete it on all phones as an everyone carries a copy. Fault tolerance is particularly useful when there are many people participating.
Cons of the blockchain technology are:
• Extremely slow compared with traditional databases (inefficient)
• New technology, continuously changing and evolving
• Transaction- time and costs
• No centralized ownership or single authority
• Extremely difficult to get a ‘’helicopter view’’ (overview) of all the solution and its possibilities
• Most platforms and projects are still in development mode, and may not be ready for big applications yet.
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