When you hear about blockchain technology, the first thing many of us think about is cryptocurrency. Blockchain technology does indeed have a major impact on crypto as it allows for safe encrypted trading to take place.
To go into further depth, recorded digital transactions are easily made possible through a decentralized ledger we call blockchain. Each set of individual records are labelled as a block and the way they are connected and interlinked creates chains of encrypted data.
In a way, blockchain technology becomes somewhat of a middle-man between two parties who need to make a transaction. Blockchain technology can therefore benefit many other industries and organizations outside of the crypto-world.
Blockchain technology has a lot of benefits, some being strong security, convenient service, and high efficiency. Other industries and organizations are noticing these benefits and are slowly attempting to implement blockchain into their systems.
Some industries that have began using blockchain include healthcare, mining, financial, government, and much more. These industries can benefit greatly from having a secure centralized authority present during online transactions and for their digital records, and alongside that, there is an elimination of transaction and processing fees.
With all of the amazing benefits of blockchain technology, why isn’t everyone implementing it?
Although blockchain technology uses a cryptographic algorithm and a decentralized ledger that make it extremely appealing, there are a few drawbacks to the fairly new technology.
Here are a few downsides to blockchain technology:
Although it maintains high levels of security, blockchain technology is not bulletproof. We’ve seen instances where DDoS attacks and cryptographic cracking has infiltrated a blockchain system.
Blockchain is also quite difficult to integrate into an existing system, making it an option that is out of reach for many institutions and organizations. It may be a while before we see blockchain technology standardized globally, but overall, the technology as a whole is a step forward.