Advancing technology means improving lives and increasing productivity in the business world. It also suggests that security risks are also going to grow. Blockchain technology aims at availing fast and efficient services while addressing fraud and hacking. So far, the technology has managed to do so. However, it still experiences some drawbacks. Let us look at some of the advantageous and disadvantages of Block Chain Technology.
Advantages of Blockchain Technology
The nature of this technology does not facilitate manipulation. Transactions are arranged in block format. These blocks are time stamped and then encrypted. Each block is linked to the previous one to form a chain. Before the linking happens, the participants must agree and verify the chain. A consensus is needed lest no transaction will be recorded.
The ledger used for transactions is accessible to all its users. No one organisation controls data or the transactions. Such kind of transparency makes sure that transactions or records will not be corrupted. It also minimises the risks of hacking and other insecurities. Transparency increases trust among organisations using this technology.
Companies such as banking and insurance are benefiting from this technology’s ability to track and store records. In the insurance business, the technology is useful in applying for policies and renewals. It can also assist in updating the underwriting process. These records are essential in handling disputes and settling claims from clients.
In the last three years, various governments have been evaluating and testing this technology. When governments begin to use this technology, it will be mainly behind the scenes. The technology has a potential of enhancing the public sector. Services towards the people will be speedy, efficient and secure. It will be used in processes such procurement and other internal operations.
Disadvantages of Blockchain Technology
The technology lacks a comprehensive response protocol in case of failure. Since some cyber policies have just begun including this technology, there are significant gaps managing risks. Bitcoin currency is among the several items using this technology. Extensive research and development are needed in bridging these gaping holes.
Since this technology comprises of decentralised network and ledger, it has particular vulnerabilities. A hacker may not manipulate transaction, but they can be sabotaged. The ledger contains all the transactions happening within this system. Although the data is encrypted, it is possible to invade it in other ways.
The blockchain technology may not have caught many peoples attention. Nevertheless, it has exhibited significant capability in enhancing the lives of people, governments and businesses. Soon, more investment will be made to utilise this technology fully. However, before thoroughly engaging, businesses ought to fully understand the technology and its prerequisites.
Imran is a Senior Project Manager – Helping Global/Pan European FTSE 500 companies deliver multi-million-pound IT Transformation Projects. Supporting high-profile and complex strategic change covering Digital and IT Infrastructure. Outside of work and since 2009, Imran has been publishing free articles to help organisations and professionals keep up to date with Project Management, Technology and Innovation trends through his blog CALLTHEPM.COM
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