⛓ What is a #blockchain and how do they work for your business and which industries can benefit? 💸 We've covered the tech stack, key solutions, and best development practices. 00:00 What’s inside the video 00:13 What is blockchain? 00:38 How blockchain works? 01:31 Key benefits of blockchain 02:02 Blockchain use cases Blockchain is one of the hottest topics of 2021. According to CB Insights’ Market Sizing Tool, the world will spend nearly $16 B on blockchain by 2023. The figure is inspiring. But is blockchain always the right solution? In this article, we will talk about the downfalls of blockchain as an investment option for 2021 but will also give you the bigger picture to decide whether to consider this ecosystem for your future. We will display that although blockchain has limitations at the moment, it is still disrupting the whole economic and social system. It just needs to prove itself which it hasn’t done yet. *3 Reasons Why Blockchain is Not the Best Solution in 2021* - *Trust* Let me start with a simple question. Would you rather trust a human or a technology? Suppose your bitcoin exchange gets hacked, what will happen? You will lose all of your money. The same will happen if your bitcoin wallet gets hacked or you forget your login credentials. These questions are in the minds of people. So, trust is an issue for blockchain today. According to PwC survey, 45% of respondents believe trust is an issue that could delay adoption. - *Security* Think of the bugs in current blockchain applications. You can encounter scams everywhere, and blockchain is no different. So when you are making your investment, take this risk into account. For example, your customer may fall victim to fake websites. Even if your site looks identical to the one your customer thinks they are visiting, they may still be redirected to a fake page. The attacker may have created a fake URL. And no one is safe from such attacks, including the customers of your business. Another way is to fall victim to the scam are fake apps. These apps are rather popular and a lot of people fell victim to fake cryptocurrency apps, reports Bitcoin News. - *Environmental Damage* Think of the amount of energy consumed in mining. According to the Cambridge Center for Alternative Finance (CCAF), around 110 Terawatt hours annually is spent on bitcoin mining. This is about 0.55% of global electricity production which is equal to power consumption by countries like Malaysia or Sweden. This may cause resistance from the general public as well as the environmentalists. *Transaction Management* - *Scalability* One of the issues of blockchain that may have implications for transaction management is scalability. The speed of the transactions depends on the network congestion. What does this mean? It means the more people or nodes join the network, the chance of slowing down is more! - *Dependence on nodes* Speaking of nodes, let us shed light on what they are and how blockchain depends on the participation of nodes. A blockchain exists out of blocks of data. These blocks of data are stored on nodes. If we put it in simple language, these nodes are identical to servers or network members. These can be computers, laptops, or any other device. In the blockchain, all nodes are connected to each other. Blockchain is a network that depends on the involvement, participation, and quality of nodes. If proper incentives are not given to nodes (network members) to participate, this may undermine the quality of transactions. In a centralized and regulated transaction system, all transactions are verified according to rules which makes it much more predictable. - *Irreversibility* In a traditional management system, the transactions may be reversed if the need comes. This is not true for the blockchain. To reverse the transaction, you need the consensus of participants in the blockchain. *The unfortunate example of DAO is very illustrative.* DAO (Decentralized Autonomous Organization) was founded as a crowdfunding event in 2016. It recorded the best results ever in a crowdfunding campaign raising $150 million with Ether. The DAO was created on Ethereum’s blockchain and inspired to empower the development of various similar initiatives. In June, a group of hackers exploited DAO’s codebase and transferred a third of DAO’s funds to a subsidiary account. ⛓ Learn more at: addevice.io/blog/how-to-build-a-blockchain-app/ 🌍 Interested in Mobile App Development? Visit our website addevice.io/ ❤️ For more updates on courses and tips follow us on: Twitter: twitter.com/helloaddevice LinkedIn: www.linkedin.com/company/addevice Facebook: www.facebook.com/addevice #blockchain #coin #Whatisblockchain #Howblockchainworks #Keybenefitsofblockchain #cryptoinvestment #crypto #CryptoNews

Be the first to comment