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Blockchain Technology Explained-[Features,challenges,Benefits,Limitations]

Block-chain Technology Explained


Blockchain Technology Explained


The next big thing in the industry is blockchain technology. The Internet has affected all the major industries in the same way blockchain will also effecting.

That’s sure maybe next two years or four years this technology will be their but what is blockchain technology and why it is so important so let’s get started.

If you have heard about bitcoin you might hear about blockchain as well as.

BITCOIN is starting in 2008 a sudo name it may be a one-person or it may be a group of people and the sudo name is Satoshi Nakamoto.

That person has created BITCOIN with blockchain, the technology behind BITCOIN is blockchain technology but what exactly this technology gives you.

BITCOIN basically a digital currency it works on peer to peer network and there is no central system.

Everyone is talking about this new technology it doesn’t matter which industry you work for all of them is trying to implement this.

Some of them are still doing POC and some of them are actually implementing it.

Infect last some years the companies are shifted to POC to blockchain look at the speed now and that’s why everyone wants to get into this technology world.

Now blockchain is a cutting edge technology that is changing a lot of stuff right.

It is replacing the old way of working and then implementing a new way now there are two questions which we want to answer in this article the first one why it is so famous.

Second is who can get into this technology because some people feel they have to be into the technical background to get into this technology, let’s see how that’s works.

What is Blockchain Technology Meaning?

Blockchain is a distributed and immutable ledger allowing you to track almost everything tangible and intangible goods.

Why Blockchain is So Famous

First of all, there are certain issues with the current technology that you are working with.


For example let’s say the internet we are using now its amazing technology right.

It has changed the way business work it has created different types of domains of business right to think about Google, Facebook, Amazon.

They all are running because of this feature of the internet right now the internet was meant to be open to everyone but the internet is actually controlled by a few companies well.

If we don’t want to love central power because it is good as of now but all about the feature.

The second issue is when you do online transactions it’s a bank transaction.
So if you want to send some money to someone we need a bank in between it doesn’t any stuck with me that’s fine.

So I want to transfer money to someone else and this the bank says hey first you have to link it from my side.

That’s fine with me but the number of fees they are charging for each transaction is something high.

  Which are concerned about even if you di PayPal they charge your own photo sent per transaction.

We don’t want a central server so that’s one issue right we have the money issue.

The second one is time so even if I do an international transaction it does take some days all our right we don’t want to wait for such time.

We want it to be fast right and that’s why blockchain says you can use our way of doing it which is decentralized the application you can implement everything in a decentralized way.


You don’t want something in between you don’t want a central server but then we have one issue here.

We could have implemented this and initialize way before right because it’s not a new term it’s very old term initializing the problem even if you implement everything in a decentralized way.

Can you trust someone else example let’s say if I want to transfer money to someone else and if I transferred to it what if someday they guy say hey you have not done that transaction?

How can it trust it other parties and that’s where the blockchain also provides you trust because everything you do online will be saved in one ledger.

So everything we store in one ledger and that ledger will be transparent so anyone can see that one and that’s where if you have transparency.

You can actually trust the system the next thing is the moment. We talk about that ledger no one can change it so the ledger which we create is basically your database.

If you have a ledger that if you are storing a lot of the transaction we don’t want it to be changed we want our transaction to be saved in the same way for a longer time.

 It should not be changed so we want it to be immediate and blockchain does provide that.

It provides you features of digitalization it provides you features of the trust and it provides you features of immutability and now the question would be is it secure of the entire blocks.

In systems works on cryptography so yes the base is itself is the same right so you can trust blockchain that it is safe.

So these are the reason why blockchain is famous because it provides you all these features and it amazing so every industry wanting different blockchains because of just of these features.

Features of Blockchain

      1.Peer-to-Peer Network
      2.Decentralized
      3.Immutable
      4.No Hacking
      5.Security
      6.Data Availability

Do we need Technical Background for Blockchain

Now let’s talk about who should get into this technology do we need a technical background for that or not?

 Just like the doctor is very new in this industry so yes we need technical people who can actually, work on this technology.

A person who can build blockchain applications we also need people who will act as an advisor. Who can consult the company and we need an architect who can actually design everything from start to end so here are the different options.


Types of Blockchain Technology

      1.Public Blockchain
      2.Private Blockchain
      3.Federated Blockchain

Public Blockchain

Public Blockchain is a type of blockchain it is open or anyone can be a part of this network.

Let’s says we have ten nodes (Devices) which are working on this technology and now if you want to be part of it you can do you can have your own node.

You can be part of that open blockchain it can be a minor or it can be a local but you can join the public network.

Private Blockchain

Private Blockchain is especially for a single company lets if I feel hey this is my finance industry and this is my company which works with blind data or money.

I don’t want this data to be shared with anyone else. I want to have a private blockchain.

 I don’t want to anyone contribute so the number of nodes who will be validating my blockchain and the number of nodes who will be adding blocks in my blockchain and knowing about everyone.

Federated Blockchain

Federated Blockchain this is where you will be having a group of people or group of the company they will be coming together to create separate blockchain and of course there will be someone who will be leading it but it will be a group of people and you will be knowing everyone in the group.

Every Technology has Advantages but simultaneously also, possesses some limitations that need to be considered while using that technology.


Blockchain Technology challenges
       1.Initial Costs for Setup
       2.Consumption of Energy
       3.Integration with the legacy system
       4.Security and Privacy
 5.Public Awareness

Initial Costs for Setup

Setting up blockchain for the very first time is very expensive as it is developed for the specific firm and therefore it is expensive to purchase or developing in house.

Also, after setting up, experts are required to fulfill the requirements, and as we know demand is high but very few resources are available.

Consumption of Energy

Miners spend a huge amount of computing power to solve the computations via proof-of-work algorithm to verify and process the transactions making it highly Energy-consuming.

Integration with the legacy system

Blockchain is running on the latest technology due to which it’s too difficult to get it synced with older systems as those systems or software need to be modified to incorporate.

The changes due to which overhead cost is increased to meet the blockchain requirements.

Thus, it might take a lot of funds or human expertise, and also it is a time-consuming process.

Security and Privacy

As mentioned before, Blockchain is a secure platform as transactions are visible only to the people on the network but still if the majority of people are in support of false practices, it can be an issue for the systems.

 Thus, it is one of the issues which need to be reviewed by the blockchain community to avoid manipulating or misusing data.

Public Awareness

Through many investors are started investing in blockchain still, there’s a long way to go for the blockchain to be fully adopted by masses. still, there are people in the world unaware of the usage, features, and many more benefits of blockchain.

So, organizations are playing high to hire the resources which are qualified.


Blockchain Technology Benefits

       1.Distributed
       2.Secure
       3.Transparent
       4. Immutable
       5.Accessible

Distributed

Standard Database has a centralized structure that revolves around a central point of authority once it’s corrupted the whole system fails.

On the other hand, blockchain has a distributed structure and no central point of authority this protects the system from corrupt nodes.

Secure

Blockchain is a mode out of digital blocks that contains information on every transaction ever made on the system.

Once part of the data is hacked, the system rejects the tempered information and remain secure in the data.

Immutable

We can’t change and whenever an update takes place a new block is created.

Transparent

So many people buy products without knowing their origins. On the other hand, blockchain allows consumers to access the whole history of a product throughout its supply chain from manufacturing to distribution.

Accessible

Blockchain is accessible allowing different parties to share information, ensuring the smooth and fast flow of data.

So whenever you hear about blockchain remembers, it’s not just a standard database. It is distributed, secure, transparent, immutable, and accessible.


Blockchain Technology Limitations

        1.Lack of Technical Knowledge
        2. Fewer people are available with proper certification
        3.Scalability
        4.Less privacy
        5.Security Concerns
        6.Complexity
        7. increased Transaction cost
        8. Manual Errors

Lack of Technical Knowledge

Despite Blockchain increasing popularity, still many investors aren’t aware of all the technical term and also there is no proper documentation which helps users to get detailed knowledge.

 Due to which, investors are unable to ask questions directly or get their doubts resolved.

Fewer people are available with proper certification

As compared to the demand for Blockchain nowadays, the experts in this technology are quite a few.

People are available in the market that can provide knowledge for the blockchain but they are not aware of the technical working of the system which is one of the reasons proving to be a blocker in its growth.

Scalability

This is one of the major limitation in the blockchain network as all the transactions performed on the network needs to be verified by each of the nodes.

Due to which, the speed of processing transactions gets limited. Still, they are working on Distributed ledger technology which is based on blockchain like hyper ledger Fabric to overcome the scalability issues.

Less privacy

As it is a distributed ledger, though identities are anonymous but still with the transaction patterns it is possible to link the user identity with that address and can get information about the user.

Security Concerns

Blockchain is a network of people. If more than half of the people become manipulate of data, then that lie becomes the truth which could be one of the major reasons for the complete network failure.

 So they need to closely observe to avoid misusing the data and to ensure security.

Complexity

Blockchain technology is not easy to understand by beginners as it involves a lot of mathematical overnight as its a bit complicated industry.


Increased Transaction cost

In the beginning, the transaction cost is almost free but as the network grows, transaction cost keeps increasing.

Manual Errors

Manual Errors can lead to outdated log information or even create a mismatching data while entering the data into the database.

To make sure the data entered is correct, that data needs to be validated. Due to which, the phrase ‘garbage in’ ‘garbage out’ is used in the context of the blockchain.

Despite all such challenges, benefits and limitations stand strong, and with the increasing numbers of blockchain adoption day-by-day, it’s highly expected of the blockchain-based future.

Google Ask Questions

Question: 1
What is Blockchain used for?

Answer
Blockchain is used to record the transaction of cryptocurrencies.

Question: 2
Who controls the blockchain?

Answer
Blockchain is controlled by crypto miners who mining all transactions and get rewarded.

Question: 3
What are the pillars of blockchain technology?

Answer
The pillars of blockchain technology
1.Peer-to-Peer Network
2.Decentralized

Question: 4
Is Blockchain the future?

Answer
In the growing digitally world the blockchain technology is the future.

Question: 5
Is Blockchain worth learning?

Answer
Yes blockchain is worth learning because it is the future technology.

Question: 6
Is Blockchain difficult to learn?

Answer
To learn the blockchain you need a technical background.


Leave your question in the comment section below I will be happy to answer them.

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