In the world of technology, Blockchain is often considered as a world-changing idea. And, in more than one way, it’s quite true as well. Nonetheless, it’s still far from the cure-all panacea that most people will ask you to believe.
While it can definitely improve our way of living, it’ll come at a huge cost, even if you’re using a safe platform like the Bitcoin Loophole site. So, if you want to know more about the same, we’ll ask you to keep reading till the end.
However, before that, we’ve shared a little bit of information about blockchain in general and its working procedure. So, don’t forget to check that out first.
How Does Blockchain Work – A Quintessential Breakdown!
The term “blockchain” is essentially created by using two different terms – block and chain. And, whether you believe it or not, each of them has a core meaning.
For instance, the “block” is just another accumulation of data or information. It’s generally created whenever someone makes a transaction by using a specific currency. And, the record will be kept there for an uncountable period of time.
On the other hand, the “chain” is – well… a way of organizing the collected data. Whenever a piece of information is collected by blockchain, it’s kept in a chain-like ecosystem. This can help in lowering the risk of information stealing or changing.
But, What’s Wrong With It?
In this section, we’ll offer a breakdown on how blockchain technology may affect us and our quality of life. So, let’s begin our journey on this front.
Problem – 1: The Environmental Misery
The blockchain ecosystem, in essence, is quite complex. And, therefore, to operate properly, it’ll consume much more computing power than usual. This, in turn, can increase the overall energy consumption and may affect the environment to some extent. Besides, managing such a huge energy cost can also be impossible for the SMEs and MSMEs.
Problem – 2: The Lack Of Regulation Can Be Risky
Thanks to the no-regulatory ecosystem, blockchain can, indeed, help in reducing your overall expense regarding transaction and whatnot. But, this makes the whole situation a lot more volatile than usual as well. Besides, it can also increase the risk of being scammed by a false currency – like Oncecoin – which has robbed millions of people already.
Problem – 3: The Complexity Can Play Hardball With You
Although it might sound judgmental from this side, Cryptocurrency is targeted towards the Gen-Z more than anything. Hence, if you’re a baby boomer, you might find it a little difficult to appreciate this brand new system. Additionally, the overall complex infrastructure of the market and the bidding system might put you off as well.
Problem – 4: Blockchain Is Cumbersome
As mentioned before, the Blockchain technology is extremely complicated. And, due to the distributed nature of the same, the overall infrastructure may move a little slower than usual. Hence, if you’re trying to make a payment through the same, it might take a while for you to finalize everything. And, if you’ve done something wrong, it might get canceled as well.
Problem – 5: There’s No Universal Standard Available Here
Nearly every implementation of blockchain is pretty unique. This, in turn, can make it almost impossible for someone to share data to another blockchain-based ecosystem. Also, the smart contract created on a single blockchain infrastructure won’t work in the other ones. Hence, in that case, you have to develop yet another smart contract, again.
Wrapping It Up!
If we look on the brighter side, the world of blockchain has definitely done a world of goods for us. However, it’s still not perfect. For example, the problem with energy consumption can affect our environment and make it difficult for us to live properly.
Also, the blockchain technology powers the whole cryptocurrency infrastructure. Now, if the banks find this system to be a rival for them, they can simply advocate for preventive rules and regulations for it. And, it won’t be good for blockchain as a whole.
So, as you can see, there are certain risks that might affect the whole ecosystem massively. However, hopefully, these issues can be taken care of in the near future so that we can boost our financial system perfectly.