What is the Disadvantages of Blockchain? | What is the Advantages of Blockchain
The development of blockchain technology is becoming more and more popular with the continuous development of applications. Under the strong development momentum of the needs of various industries, blockchain technology has undergone rapid changes.
And the results achieved in various industries are also becoming more and more By the attention. However, everything has advantages and disadvantages. Let me talk about the advantages and disadvantages of blockchain:
Advantages of blockchain
1. Decentralization
The blockchain uses peer-to-peer network technology when storing data, using distributed accounting and storage, and there is no centralized hardware or management organization. The rights and obligations of all nodes are equal, so the shutdown of any node will not affect the overall operation of the system.
2. Collective maintenance
The system is open. In addition to the encrypted private information of all parties to the transaction, the system is jointly maintained by all nodes with maintenance functions.
3. Information cannot be tampered with
Once information is verified and added to the blockchain, it is recorded and stored permanently in chronological order. Create an immutable, trusted database that limits associated wrongdoing. Therefore, the data stability and reliability of the blockchain are extremely high.
Disadvantages of Blockchain
1. No privacy
In the blockchain public chain, every participant can obtain a complete data backup, and all transaction data is open and transparent. If you want to know the account and transaction information of some commercial organizations, you can know all his wealth, important assets and business secrets, etc., and there is no privacy at all.
2. Security issues
A major feature of blockchain technology is that it is irreversible and cannot be forged, but the premise is that the private key is safe. The private key is generated and kept by the user without the involvement of a third party. Once the private key is lost, no operations can be performed on the assets of the account.
3. Delay in data confirmation
In the financial blockchain, the data confirmation time is relatively long. Taking Bitcoin as an example, the validity of the current transaction is affected by network transmission. The exact time of each Bitcoin transaction is about 10 minutes, and it takes an hour for 6 confirmations.
4. Supervision
The decentralized and autonomous features of the blockchain dilute the concept of national supervision. However, all innovations need to meet regulatory requirements. The supervision of the blockchain, in a certain way, is to promote the commercial application of the blockchain and better provide compliance protection. On the other hand, there is a lag in the establishment of laws and systems for this new technology by the regulatory authorities, and it may also destroy the blockchain, so it is necessary to grasp the scale.
Blockchain, as a conceptual innovation, can have a subversive impact in specific fields. In the face of the advantages and disadvantages of blockchain, what needs to be done is to maximize strengths and avoid weaknesses, and use what we can. So whether the blockchain can become the underlying technology of the new generation of financial infrastructure is still a question.
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