By Gyan Gupta, Product Evangelist, Bada Business
Blockchain as a technology is nothing but providing a decentralized and transparent system for recording and verifying. It is a system that is very difficult to breach or something where you can alter the transactions because it happens on a very large scale of networks because of being decentralized. However like everything else Blockchain offers both opportunities and challenges. One of the fundamental opportunities that the Blockchain has is that it allows you to build immense trust and transparency in the entire transaction process. By establishing trust equity, the role of any intermediary is eliminated automatically like an auditor or even a bank. You can learn more about crypto in the best online learning platform
This can be implemented in numerous ways, it can be used to build your efficiency and hence aid cost reduction. Case in point, while executing a contract the need to engage a legal expert or an auditory expert is done away with. It will be a smart contract which is basically a self-executing contract, with defined rules, where agreements are automated resulting in significant reduction in the administrative costs and delays. So implementing smart contracts is one of the bigger opportunities of Blockchain.
Next comes the aspect of security, it gives a very secure and tamper proof data by virtue of its cryptographic techniques. It is next to impossible to alter or manipulate the data that has been recorded in the Blockchain; hence the authenticity of the data is highly credible. Further since it’s tough to alter or manipulate this data, one can use that to build high quotient transparency and trust with zero room for doubt as there are no intermediaries. The data being so secure and tamper proof it can be used for your data privacy and control. It will give a much higher level of data production and control. Furthermore comes a rather controversial plus point of Blockchain which is the facility of seamless cross border transactions. While it comes with its own set of issues which is usage being done in a negative way, it is a huge ease for cross border transactions by being a global currency.
However like every opportunity the ones mentioned above come with their own set of challenges. First of all to execute crypto, a high compute power is a prerequisite which is expensive and has a high energy consideration. So executing this is challenging due to the cost and the energy is produced. The second problem is that of scalability, a lot of public domains like bitcoin and ethereum have limitations in terms of cap on transactions and also speed and capacity that can be accommodated. The biggest challenge is the regulatory and legal concern, because the legal framework around this is still being evolved, different countries are adapting it differently. Next is the lack of interoperability and standardizations, as there are different protocols and different Blockchain platforms which are far from seamless. A lot of work needs to be done in interoperability.
In times to come, challenges will have to be overcome, it will have to be made more affordable, have the right regulatory framework in place and create more practical use cases that are easy to adapt and easy to implement.
