Most technologies involve a trade off, an exchange relationship. In the case of blockchain, for example, this is scalability: although the network is extremely secure, it has difficulties in adapting its size flexibly. After all, the rules are written in the protocol. In addition, the process by which consensus is established in the network is sometimes computationally intensive. This ultimately costs energy (electricity).
Benefits of Blockchain
- Trust. One of the biggest advantages of the blockchain is the technologically created trust: away from central players towards a decentralized network
- Greater autonomy for individuals possible
- You can protect data from attacks and manipulation
- Processes or contracts can be digitally mapped and executed (e.g. using Smart Contracts ).
- Greater efficiency through less administrative work, lower costs
- Infrastructure for Internet of Things and Artificial Intelligence
Blockchain Technology Trade Off: Pros and Cons
Since blockchain technology goes to great lengths to create security, it requires a comparatively large amount of energy (electricity) to do so. It also has scalability issues. So the ability to adjust the size is limited.
Disadvantages of Blockchain
- Block limitations on storage space
- Little control or changeability afterwards
- Fixed technology limits adaptability
- scaling issues
- High computational effort