Question

Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.

Discussion Question:

What are the Disadvantages and advantages of Blockchain?

Answer 1

Advantages of block chain:

1) The fraud percentage due to usage of block chain technology is zero as it is constantly monitored.

2) Instant transaction and the transaction done on block chain is 10times faster than a normal bank transaction.

3) It improves the financial efficiency of any company by removing third parties as payment are done to the end user without any other intermediary.

4) It is controlled by any government body as it is centralised system the failure chances are very low.

5) The problem in the block chain can be easily traced and rectified.

Disadvantages of block chain:

1) There is a difficulty in updating the block chain as each node should be updated.

2) Even If there are any errors than eliminating them is difficult.

3) As there is no authority in block chain it will be difficult to identify the user identity.

4) Black market will increase as there is regulating authority.

5) High input costs are required even though it reduces the transaction costs.