Blockchain technology has been a major segment of cryptocurrencies since it was first discovered.
However ,do we really understand what blockchain technology involves, or we just have a vague idea about the subject?
Nonetheless, before criticising the talk of the decade, let’s have a brief overview of the same.
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To put it in the simplest of words, blockchain technology is made up of a system that stores and protects information, transactional records to be specific, with the help of cryptographic technologies, making it almost impossible to be forfeited or hacked by any central authority or thieves.
A blockchain typically uses a distributed financial accounting system to share data across the computers in its network. This shared data or information cannot be controlled by any Central authority because a blockchain is designed to be decentralised.
Hopefully by now we have all gathered a basic idea about the term we have been hearing since our teenage years. But to understand the drawbacks of a subject, we would need at least a basic idea about how that thing works. So, let’s dive into the functioning of Blockchain.
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>>FUNCTIONING OF BLOCKCHAIN TECHNOLOGY
To trace out the functioning of blockchain without much complications, we can say that it comprises of three major fragments.
• a system that shares decentralises information ;
• security protection using cryptograms;
•use of a financial accounting system that shares information with each and every computer on the network.
So, if we combine the fragments, what we get is a secured storage system,used to conduct transactions in cryptocurrencies.
So, now we have the idea about both the subject and it’s functioning.
And it’s time, that we now move forward and focus on today’s main topic of discussion.
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》THE DRAWBACKS OF BLOCKCHAIN TECHNOLOGY
Before we begin with the drawbacks, we should keep this in our mind that , everything has its disadvantages. So while we are looking at the drawbacks , we should not forget that blockchain technology has its advantages as well.
Now, let’s begin with the drawbacks.
• Excessive electricity consumption
In today’s world, energy preservation is the need of the hour. But it seems that blockchain does not consider that as a problem, because, the amount of power it takes to execute blockchain operations is almost proportionate to that of a small country’s electricity consumption.
•Complex nature of the system
If we look at the system from afar, we would see a simple system that runs smoothly. But in recent times, the system has been developing complexities with every passing day.
We know that blockchain is a decentralised system, but nowadays banking sectors and other administrations are getting accustomed to the system. But these sectors are centralised unlike blockchain. So , increasing the complexity of the subject, they are creating a system that is neither completely decentralised nor centralised.
• Lack of Opportunity
If we consider a professional future of ours in the blockchain industry in India, we are likely to be added to the group of unemployed youth.
This is because unlike the foreign countries of UAE, USA , America, China , etc. ., there has been almost no development in the cryptocurrency sector in India. We have been on a stand still since forever.
• The 51% Attack
No, that is not just a proportion of attack rate.
‘51% Attack’ in Blockchain technology, specifically refers to a kind of attack in which , if the coin miners are able to get hold of more than 50% of the currency available, they are capable of intentionally plundering the network with misguiding information and records.
Blockchain has been proven to be one of the most inflexible technologies. This is in the case of modification of already updated records. Reports suggest that once a data is updated or saved on the ledger of the blockchain, it is almost impossible to rectify it.
We are aware of the fact that blockchain uses cryptograms to secure its transaction records over the server.
But apart from that, every user is holder of an unique password , termed as ‘ Private Key’ and just like every other pass-codes/pins, he/ she is cautioned to not share it with another soul. But unlike normal passwords, if once lost this keys cannot be re-generated which clearly means losing every penny of your hard earned money.
These are some of the major drawbacks of Blockchain Technology.
But it is a fact that though it has its fair share of disabilities, blockchain, if developed properly, is sure to achieve a bright future.