Before we delve any deeper, let’s first understand what is ‘Blockchain’ after all? If you are thinking, what’s the ground-breaking database technology that’s the foundation of nearly all the cryptocurrencies? It’s BLOCKCHAIN, yes. Blockchain makes it very difficult to tamper or exploit the mechanism by dispersing identical versions of a database across an overall infrastructure of the network. Further, Blockchain is leveraged for decentralized application development that can store data about transactions related to cryptocurrency, NFT ownership, or Defi intelligent deals. And its usage doesn’t end here; from banking, asset transfers to supply chain monitoring, and voting, Blockchain has various purposes. So, why is there a current discourse on whether Blockchain is the future or just a fad?
Advantages of Blockchain-
Increased Accuracy of Transactions
In today’s paradigm, with such a massive flux of data from a multitude of sources, it has become usual to witness cases of a data breach. While the traditional transaction methods hang by a thread, we see blockchain technology taking the world by storm. As you might have guessed already, one of its significant grips over businesses is that it can safeguard transactions. A blockchain transaction has to go through a verification process via several nodes. If one node gets it wrong in the data file, the others will notice and grasp the error being made.
No Intermediaries
Using Blockchain, two entities in a business process can validate and finalize a transaction without the involvement of a third party. This helps save time and keeps the costs down that would generally be spent on an intermediary, such as a bank.
Extra Security
As mentioned before, a decentralized network, such as Blockchain, renders fraudulent transactions seemingly impossible. Because, in order to forge transactions, they would have to infiltrate through every node and alter every ledger. Moreover, there is also a rigorous security system within a blockchain that uses proof-of-stake or proof-of-work transaction authentication schemes. Such instances make it quite daunting and aren’t necessarily considered to be in the best interests of a participant attempting to exploit transactions.
More Efficient Transfers
Again, owing to its decentralized nature, we know that Blockchain prohibits the requirement of middlemen in several mundane processes like payments and real estate. In contrast to the conventional financial system, Blockchain facilitates efficient and rapid transactions. It can be operated 24/7 by individuals and proves credibility with asset transfers internationally. Also, you won’t have to stay put for days to receive a confirmation note from a bank or government agency.
So, What Do We Conclude?
We won’t lie; there are always two sides to a coin. Similarly, with Blockchain, you’ll have to deal with a limit on transactions per second and high energy costs. Since this revolutionary system demands approval from a more extensive network, it has a cap over how promptly it’ll move. And since transactions depend on a significantly higher amount of electricity, it can be expensive and has the potential to increase the carbon footprint. Needless to say, we can still expect a booming career for a dapp development company like Wordsys because blockchain technology could just be the FUTURE!
