The technology behind the giant Cryptocurrency Bitcoin and one of the hottest topics when it comes to new technologies has begun to shake the foundations of industries all over the world, and it isn’t even being implemented yet.
Learn about the disrupting power of this new age and the advanges and threats Blockchain Technology will face on its road to become the new mainstream.
The Blockchain Rise:
If we go back to the year of 2013 we find out the Google searches for the term Blockchain or Blockchain technology exist, but aren’t that many.
Fast foward to 2017 and we now have a rise of over 1900% on searches using those terms.
This new technology has a lot of potential, and it can revolutionize the world in a way that only the appearance of the Internet itself did.
It will turn process into democratic procedures, it will help investors, start-ups, individuals, angel investors, entrepreneurs, organizations, governments, states, commerce unions and more!
So, having this in mind, what are the benefits and challenges that Blockchain as a technology faces?
Blockchain Benefits: The Advantages
With the use of this technology, two subjects can now trade without the need of a third one to act as the intermediary, which reduces both risk and expense.
On the other hand, the users are always in control of the information and transactions by having all of the information within the chained blocks at all times.
The data is always consistent, accurate, reliable, complete and available.
Decentralization is key with blockchain, and since it hasn’t got a central core it isn’t as vulnerable to corruption or hacking attempts. This means users can always trust the processes and transactions to go according to protocol commands, removing the middle men.
Finally, public blockchain changes are always visible to all parties of the transaction and therefore present a degree of transparency and detail never seen before in the history of mankind. There is no forging or deleting info with this kind of technology.
Everything will be simple and there’s a kind of “public ledger” available, removing the confusion of having multiple data repositories – everything is available from a single chain of blocks.
The transactions using this new technology will only take minutes, as opposed to those witnessed by banks and traditional means which nowadays take hours and even days to clear.
Blockchain Threats: The Challenges
First of all, it is a newborn technology, so there is a lot of figuring out on the way to mainstream road. There are a lot of variables to polish to make sure everything runs up to specs, from transaction speed to data limits, verification processes and more. This will be deal with in time.
On the other hand, modern currencies are always regulated, while blockchain and cryptocurrencies are still unregulated and their status unchecked, which according to many isn’t a bad thing, but still prevents the technology from exploding into mainstream use.
Then there is also the logistic matter of energy consumption. The blockchain network mines need to be able to process close to 450.000.000.000.000 operations per second (And no, there are no mistakes in the number of zeros). This consumes a lot of power, so taking this mainstream means we need heavy machinery, something that will invariably come in the next 10 years, worst case scenario.
Cyber security concerns are still high because blockchains can be used in a private / permissioned model to allow personal data to be exploited and mined.
As far as integration is concerned, all existing systems would have to be replaced, and the switch would take a lot of development from companies, who naturally need time to process such changes.
Finally, there’s the cultural adoption ratio. People are used to working in a centralized network, and adopting a decentralized network will be daunting at first, requiring the pioneers and buy-ins to take the first step for humanity.
The last challenge is the cost involved. Even though blockchain technology will save everyone’s money, it requires a huge deal of initial capital investment to become highly adopted.
And these are the main opportunities and threats in regards to this exciting new technology people can’t get enough of.