The USP of a Blockchain Technology is that it permits a database to be shared directly without a central administrator to its associate members to bring transparency in the system. Rather than having some centralized application, Blockchain transactions have their self-proof of validity and authorization. Blockchain has the capacity to change the business style of today and also improve efficiency in the management of an organization. Moreover, it works on computer networks that are connected to a central point without the interference of a third-party. Blockchain Technology and its apps are being developed daily on a broader scale and are considered to be the most effective tool of the decade. Industry can learn more through Blockchain Technology because it gives some advantages as well as disadvantages which we will discuss in brief:
The crucial advantages of implementing the Blockchain Technology for the industry are:
- Decentralisation: This is one of the primary benefits of this technology because, in a Blockchain powered system, the need for third-party or intermediaries is eliminated by its working mechanism that manages the process of validating, verifying and clearing the various transactions.
- Trustworthy: A distributed ledger in blockchain technology records all crucial transactions in such a manner that they are readily available to all the blockchain members. As now the ledgers are being shared publicly, this brings more transparency and trust in the entire system.
- Simplification: Present working model in various organizations, in whichever sector like automobile, healthcare, banking, etc. every department is maintaining their own databases. Blockchain technology serves a single shared ledger that makes data sharing fast and simpler involving all departments.
- Faster Trades: Any kind of trade or contract has to pass through a various verification process before reaching its final destination. Blockchain technology can assist in saving time here, by offering single ledger to all the associated parties by providing faster settlement of trades.
With some crucial advantages, Blockchain Technology has some drawbacks too for an industry:
- Nascent Technology: With having several benefits of Blockchain Technology, the primary disadvantage of this cutting-edge technology is that there are some nasty challenges like transaction speed, the verification process, and data limits should be resolved before making blockchain widely applicable.
- Uncertain: As most of the modern currencies of today have been created and regulated by national governments, financial institutions, etc. Blockchain or bitcoin face a hurdle in widespread adoption as their financial transactions would be restricted because not authorized by the government institutions and as a result remain unsettled.
- Higher Costs: Developing a Blockchain into your organization is not an easy task, it involves massive energy consumption, a decent amount, colossal capital cost, etc. that might be not possible for medium scale as well as low scale businesses. It is a fact that it offers tremendous savings in transaction cost, but at the same time, its implementation cost is too high.
- Power Use: The consumption of power in the implementation of Blockchain Technology is comparatively high. Keeping a real-time ledger is one of the underlying reasons for this higher consumption because every time it produces a new node, it communicates with every node at the same time.
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