Blockchain is one of those technologies that has been around for quite some time but it took a while before it caught the attention it deserves. Maybe we have to thank the incredible spike in values of cryptocurrencies, maybe not. But this is not important. What’s important is that Blockchain technology has a lot to promise to numerous industry branches and civil care institutions.
Furthermore, Blockchain tech is running on a code which is not carved in stone. This means that it is being updated as we speak. We can safely assume that we are reaching a day when all of the paper and manual based services will be moved online and powered by Blockchain.
The answer to this question is quite simple. Because the Blockchain technology is essentially a database technology. The data records are distributed all over the network. By making the data record decentralized, Blockchain also takes care of its security. Every single change made to these records (which can contain transaction information) has to go through the validation process before it gets stored in the database. And in order to be validated, more than 50% of the nodes in the network have to approve the validation.
This is how we come to the conclusion that security is definitely a good side of Blockchain technology. The entire validation process is done via cryptography. Before making a transaction, each node in the network has to solve complex mathematical equations before the data block can be validated. This makes all data contained in the Blockchain impenetrable and impossible to be tempered.
Transactions are Made Easy
There are currently many companies that run mainframe systems. Their primary efforts are made towards making these systems better and efficient while giving their best to keep the operational and maintenance costs at a minimum. Blockchain, being the revolutionary technology that it is, has a great impact on how companies are looking now on these mainframe systems and how to make their services even more competitive.
When we are talking about mainframe systems, we are actually referring to those used to transactions which are growing exponentially in complexity and requirements. By making the computation of transactions fast and streamlined, keeping the data decentralized and transparent, Blockchain can successfully handle the growth in complexity while at the same time saving the costs.
The Elimination of the Middleman
Peer-to-peer transactions do not require any of the third parties to be involved. Both companies and customers can do these transactions in real time. This can be seen as a bad side by those who were making their money while being in the position of a middle man. And, considering the amount of power in the hands of today’s “middle men”, we can surely expect to see them fighting against Blockchain technology implementations, at least in the domain of financial transactions.
Another challenge that lingers above the implementation of Blockchain technology is the confusion surrounding this concept. As I’ve already said, Blockchain is not a new technology, but there are still people who find the idea behind it too distant to be grasped and actioned upon. There are still misconceptions regarding Blockchain and Bitcoin. Many don’t know that these are not the same. While Blockchain is database technology, the Bitcoin is a cryptocurrency powered by this technology.
In order to successfully become a node in the Blockchain network, one has to download and use the data that was built to that very moment. This data is sometimes larger than a few dozens of gigabytes. This is why all the Blockchain teams are working on reducing storage requirements. If the technology is aiming to become the leading trend in the industry, relying on real time transactions, it has to be mobile friendly.
The data grows as the network grows, making it impossible for mobile clients to use it due to the low memory storage on their mobile devices. Since the storage requirements of this technology are quite high, this technology is anything but cheap, especially for companies who have to scale storage devices as the network expands.
These are the good and the bad sides of Blockchain. But since programmers are constantly working on improving the algorithm that powers this technology, we can safely assume that we are going to see some updates that will address various issues.