Blockchain, mostly known as backbone technology behind Bitcoin, is one of the hottest and most interesting technologies currently on the market. Since 2013 Google’s search for “blockchain” has increased by 1,900%. Very similar to the increase in the internet, blockchain has the potential to really disrupt some industries and make the process more democratic, safe, transparent and efficient. Businessmen, startup companies, investors, global organizations and governments have all identified blockchain as a revolutionary technology. All emerging technologies should have some positive and negative impacts in their application. Now we will discuss what are the important benefits & challenges associated with implementing blockchain technology:
Benefits of Blockchain Technology
Two parties can conduct unattended or intermediary exchanges from third parties, greatly reducing or even eliminating counterparty risks (third parties or participants, either banks or customers, with whom financial transactions are made, or parties who conduct financial transactions).
2. The users are authorized
Its users have control over all their information and transactions.
3. High quality data
Blockchain data is complete, consistent, timely, accurate and widely available.
4. Durability, reliability and longevity
Because of a decentralized network, blockchain does not have a center of failure and is better able to withstand dangerous attacks.
5. Process with integrity
Users can trust that transactions will be carried out exactly the same as protocol commands and eliminate the need for third parties.
6. Transparent and immutability
Changes to public blockchains can be seen openly by all parties that create transparency, and all transactions that cannot change, which means they cannot be changed or deleted.
7. Facilitate the ecosystem
With all transactions added to Ledger common single / single public ledger, reducing clutter and complications from some ledger / ledger.
8. Faster transactions
Interbank transactions can potentially take up to several days for clearing and final settlement, especially outside working hours. But Blockchain transactions can reduce transaction times in minutes and be processed 24/7.
9. Lower transaction costs
By eliminating third-party intermediaries and overhead costs to exchange assets, blockchain has the potential to reduce transaction costs.
Challenge blockchain technology
1. Newborn technology
Addressing challenges such as transaction speed, verification process, and data limits will be very important in making blockchain that can be widely applied.
2. The regulatory status is uncertain
Because modern currencies are always created and regulated by national governments, blockchain and Bitcoin face obstacles to the problem of adoption / application by existing financial institutions if the status of government regulations has not been established.
3. Eating big energy
Bitcoin miners on this blockchain network are trying 450,000 trillion solutions per second in an effort to validate transactions, using a large amount of computer power.
4. Control, security and privacy
In addition to a solution, including blockchain private or permissioned and strong encryption, there are still cyber security concerns that need to be addressed before the general public entrusts their personal data on the blockchain solution.
5. Integration problems
The Blockchain application offers solutions that require significant changes or complete replacement of existing systems. In order to make changes, companies must develop a transition strategy.
6. Cultural application
Blockchain is a complete shift for decentralized networks that require buy-in of users and operators.
Blockchain offers tremendous savings on the issue of transaction costs and time but the cost of high initial capital can be a barrier.
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