Blockchain technology has been a hot topic in the technology industry in recent years. It is known to be used in the creation of new types of cryptocurrencies, like Bitcoin, and its applications can also be used in fields such as supply chain management, real estate, and finance. Though there are numerous benefits to using blockchain technology, it also has some limitations to its applications.
One of the most significant benefits of blockchain technology is its ability to provide secure and transparent transactions. In a traditional transaction, there is always a third-party involved in overseeing the process. In blockchain technology, the decentralized nature of the system eliminates the need for a third-party. This reduces the risk of fraud and ensures the security of the transaction.
Another major benefit of blockchain technology is its permanence. Once data is added to the blockchain, it becomes a permanent part of the chain. As a result, every change made can be traced back to the origin. This provides opportunities for increased visibility and accountability, which can help prevent fraud and other financial misconduct.
Despite the benefits, there are also limitations to using blockchain technology. One of the primary concerns is the energy consumption required to operate the network. The high energy consumption is attributed to the process of validating and verifying transactions, which require a tremendous amount of computing power.
In conclusion, blockchain technology has numerous benefits in various fields. It is secure, transparent, and ensures the integrity of transactions. However, there are also limitations to its applications, including high energy consumption and scalability issues. As technology evolves, its limitations can be mitigated, and its benefits expanded.
References:
1. Swan, M. (2015). Blockchain: blueprint for a new economy. O’Reilly Media, Inc.
2. Kshetri, N. (2018). Blockchain’s Roles in Meeting Key Supply Chain Management Objectives. International Journal of Information Management, 39, 80–89.
3. Zheng, Z., Xie, S., Dai, H.-N., & Chen, W. (2017). Blockchain challenges and opportunities: A survey. International Journal of Web and Grid Services, 13(4), 352–375.
