Blockchain, a technology that has attracted interest on a worldwide scale, has evolved from just being the foundation for cryptocurrency transactions to being the basis for a plethora of other uses. It is possible to infer the rise of this technology from the fact that many well-known companies in the sector, including IBM, Microsoft, Amazon, and Walmart, are looking at how to use blockchain to enhance their business processes.
We cannot deny the fact that blockchain has its share of controversies, even though it is receiving praise from all sides. There are many questions that it needs to address before joining the mainstream of operations, from the lack of regulations to its longevity in the future.
The main goal of this blog is to understand the significance of blockchain technology, the opportunity it offers, and the threat it poses to existing technologies.
Let's understand what blockchain is.
Understanding blockchain and its distinctive characteristics that set it apart from other technologies are essential if one is to comprehend how it is making a difference and serving as a means of closing technological gaps.
In simple language, blockchain is the underlying technology underpinning transactions using digital currencies, with all relevant data being recorded in a digital ledger. Everything is there in its proper place and time. It is difficult to hack or attack the data contained here because everything is encrypted in the blockchain ledger.
The greatest concern we have now is losing data or information; everything is digital now, and information is out on the World Wide Web, making it extremely vulnerable to assault. The fact that all of the data is now centralized, meaning there is a single repository for all information, is another area of concern. As a result, if this system fails, all of the other linkages that are connected to it would be adversely affected. Blockchain claims to offer the answer to this issue.
How Blockchain Functions?
Let's examine the impact that blockchain has. Everyone is aware that blockchain's decentralization distinguishes it from other technologies and is one of its most important features.
In the existing setup, a hacker just needs to attack the central system; if they need to contact millions of nodes to obtain data, it would be quite simple for them to do so. Introducing blockchain. It is more difficult for them to assault, hack, and intrude into the network because the information in the blockchain is decentralized and dispersed across the network.
Let's examine the impact that blockchain has. Everyone is aware that blockchain's decentralization distinguishes it from other technologies and is one of its most important features.
In the existing setup, a hacker just needs to attack the central system; if they need to contact millions of nodes to obtain data, it would be quite simple for them to do so. Introducing blockchain. It is more difficult for them to assault, hack, and intrude into the network because the information in blockchain is decentralized and dispersed across the network.
In the case of the blockchain, the hacker must target more than half of the devices that are dispersed globally, making their task more challenging than it is now when targeting a single system.
Are current technology and blockchain at war?
Some people believe that blockchain is autocratic and will prevent the viability of alternative technologies. On this matter, though, I beg to differ. In my opinion, blockchain will coexist with other technologies; it may even combine some of those technologies within itself. However, it does not pose a danger to already-used technology. But I also can't deny that the blockchain will eliminate any third parties that would pose a challenge to the present players, such as Visa, MasterCard, PayPal, e-wallets, etc. Given the fact that blockchain technology is still developing, it is too soon to expect such a significant change.
The Dangers
The banks that use the third-party platform are the main target of the threat that the blockchain poses to the current system. Peer-to-peer transactions can be facilitated by the blockchain, negating the need for third parties to interfere. When it comes to the current system of work, you can see that there are processing fees, verification, approval time, taxes, etc. One can get around these costs by using the blockchain platform. The two parties in the business seal the agreement and sign the contract.
In addition to these issues, data theft and information leakage are two more frequent issues in the existing system that can be resolved with blockchain. As previously mentioned, it is challenging to hack into the system; even if successful, the changes can be easily traced and tracked. The hacker must successfully break into numerous systems in order to enter the network and change any data.
Wrapping Up
For the time being, everything appears to be in order, but as we dig deeper into the blockchain, we discover instances of systems being hacked, money being taken, and networks being disrupted. Additionally, blockchain is an ungoverned system that is not under governmental jurisdiction. Additionally, the parties stay anonymous within the system, making it challenging to identify the offender in the event of fraud or theft.
As a result, we can see that while blockchain presents a great technology, its practical implementation is still a ways off. Although banks and other businesses are engaged in this field, it is still in its infancy. Furthermore, it has to be shown how well blockchain will function when faced with handling millions of data. How well the system will be able to handle the entrance and outflow of data and how quickly it can process it.
So, while blockchain is not directly at war with other technologies, it is a disruption to the flaws in the existing systems.
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