Blockchain Technology Benefits and Challenges

Now that you have a general understanding of how the blockchain works, let’s take a quick look at why it’s so interesting.

Using blockchain technology has remarkable benefits:

You have complete control of the value you own; there is no third party that holds your value or can limit your access to it. The cost to perform a value transaction from and to anywhere on the planet is very low. This allows micropayments. Value can be transferred in a few minutes, and the transaction can be considered secure after a few hours, rather than days or weeks. Anyone at any time can verify every transaction made on the blockchain, resulting in full transparency. It’s possible to leverage the blockchain technology to build decentralized applications that would be able to manage information and transfer value fast and securely.

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However, there are a few challenges that need to be addressed:

Transactions can be sent and received anonymously. This preserves user privacy, but it also allows illegal activity on the network. Though many exchange platforms are emerging, and digital currencies are gaining popularity, it’s still not easy to trade bitcoins for goods and services.

Bitcoin, like many other cryptocurrencies, is very volatile: There aren’t many bitcoins available in the market and the demand is changing rapidly. Bitcoin price is erratic, changing based on large events or announcements in the cryptocurrencies industry.

Overall, the blockchain technology has the potential to revolutionize several industries, from advertising to energy distribution. Its main power lies in its decentralized nature and ability to eliminate the need for trust.

New use cases are arising all the time — like the possibility of creating a fully decentralized platform that runs smart contracts like Ethereum. But it’s important to remember that the technology is still in its infancy. New tools are being developed every day to improve blockchain security while offering a broader range of features, tools, and services.