You may have heard of Blockchain technology as it’s often talked about in relation to the world of cryptocurrency. Essentially, Blockchain is used as a decentralized ledger technology service that records digital transactions. It is described in some ways as a middle-man for two parties needing to come together for online data and financial services.
To break it down simply, Blockchains are a set of individual records, referred to as blocks, which are interlinked ultimately creating a chain.
Although Blockchain technology initially emerged out of the cryptocurrency area, we’re beginning to see other industries attempt to integrate the technology within their systems. Industries such as healthcare, government and other financial institutions are finding Blockchain extremely secure for online transaction recording without the use of a centralized authority.
The major benefits of using Blockchain technology consist of significantly reduced security risks and the elimination of service fees for transactions and processing.
With cybercrime hitting an all-time high, many are turning to Blockchain technology as it’s cryptographic algorithm and lack of centralized authority makes it extremely hard for cybercriminals to breach. Amongst all of the benefits of using Blockchain technology, there are some areas where the technology falls short.
Here Are Some Drawbacks to Blockchain Technology:
Blockchain technology needs to mature a ton before it becomes standardized across more industries. If too many users are on the network, it can slow down significantly. Alongside this, at the moment it’s not easy to integrate into already existing systems.
And although it is nearly impossible to hack in comparison to other technologies, nothing is 100% safe from cybercrime. DDoS attacks and cryptographic cracking are still methods that could potentially breach a blockchain system.
Overall, Blockchain technology is moving in the right direction with newer upgrades attempting to reduce these drawbacks. In the future, we will probably be seeing blockchain technology standardized in many different industries globally.