What are the advantages and disadvantages of blockchain?

by Anii Jain Human resource executive

A futuristic and quite visionary technology as believed by most, blockchain as a technology promotes transparency and empowers people to think differently about exchanging value and assets, sharing data, doing business and enforcing contracts. It is transforming the digital information ecosystem with respect to data collection and preservation. With the successful implementation of blockchain in cryptocurrency domain with the likes of Bitcoin, blockchain has grown beyond its originating point- fintech. The use case range from identity management, ownership proof, and anti-counterfeit protection to self-executing contracts. The technology appreciates and facilitates efficiency and freedom from cumbersome paperwork and manual processing.

Most blockchains are designed as a decentralized database that functions as a distributed digital ledger. These blockchain ledgers record and store data in blocks, which are organized in a chronological sequence and are linked through cryptographic proofs. The creation of blockchain technology brought up many advantages in a variety of industries, providing increased security in trustless environments. However, its decentralized nature also brings some disadvantages. For instance, when compared to traditional centralized databases, blockchains present limited efficiency and require increased storage capacity.

Advantages of Blockchain