Blockchain technology first became accepted in 2016 and has quickly made its way into many businesses and online communities. This public electronic ledger can provide many benefits; however, like everything, there are always disadvantages. In this article, we’ll take a look at these benefits and cons, so you can determine if it’s the right choice for your business. Let’s get started.
Easy global transactions
As blockchain is decentralized, money can now be transferred all over the globe quicker than ever before, with few issues. Before this type of technology, transactions could take up to a few days through regular banking organizations. However, now it can take just a few minutes. This is a significant benefit, and one of the main reasons why businesses are adopting this technology.
Significant carbon footprint
One of the largest disadvantages of blockchain technology is its considerable impact on the environment. Take bitcoin mining, for example; it involves the process of solving complex mathematical problems, which uses up a lot of energy. While this is not the same for all blockchain technology, it is still an issue for many cryptocurrencies. At one point, crypto mining was using as much energy as a small nation.
Eliminates human error
As blockchain technology uses multiple computer systems, data is verified quickly and easily without the need for human involvement. This then means that the records are more accurate, and this virtually eliminates all human error. It’s one technological system with incredible accuracy and efficiency.
Fluctuating cryptocurrency
The many cryptocurrencies that use blockchain are incredibly volatile, leading many investors to wonder if it is really worth it. Prices can fluctuate daily, and some cryptocurrencies can flop altogether. This can be a significant disadvantage, as many individuals don’t want to be involved with such a risk. However, if you are interested, you can create a bitcoin wallet account online to secure your funds.
Increased security
Blockchain technology is very secure and is a great way to protect your data. This is because anyone that accesses the chain is given a unique code/identity linked to their account. This then makes it much more difficult for hackers to interrupt the chain. While it’s not impossible, it’s undoubtedly one of the most secure online technologies available.
Difficult to modify data
Another disadvantage that has to be taken into consideration is that once data has been added to the chain, it can be very difficult to modify. While some individuals like this about the technology, it can cause problems further down the road. To modify data, the process is extensive and requires changes to the code. Often this involves abandoning a node and creating a new one.
When taking the above into consideration, it’s interesting to see what makes blockchain technology so appealing to many. However, there are a few disadvantages that should also be looked into. When making your decision, keep in mind your business values, and your overall plan. This will help you decide if it is worth investing in.
