Bitcoin has caused the popularity of blockchain to skyrocket, allowing many organizations to begin implementing blockchain technology for various reasons. While it has many benefits, there are also obstacles to overcome when using blockchain systems. If you are thinking about transferring your organization to a blockchain network, here are some things to consider. These points will help you confidently make a case for blockchain use to other members of your organization.
Blockchain
As the name suggests, blockchain works by linking transactions together like a chain. Each new transaction is built on top of the one that came before it. Blockchain is a decentralized, peer-2-peer system, meaning that information is ‘sharded,’ or split into pieces, and stored on all computers in the network.
Challenges
Blockchain technology is still developing, meaning that it is difficult to find established, experienced professionals to partner with or hire. Those that do exist are in high demand. However, managed blockchain service providers are an excellent example of a new service created to meet that demand. While it may be difficult to obtain the services of a blockchain professional, it is not impossible.
Blockchain implementation is also more of a long-term strategy than an immediate process, as it is an entirely new basis for a system. It takes time, energy, and resources to set up. There are many benefits to using a blockchain system, but it is essential to consider your organization’s resources and long-term plans when looking at blockchain implementation.
Benefits
Data on a blockchain network cannot be altered or erased, only amended. As new transactions are added, they have to be accepted by each computer on the network, and they are automatically time-stamped. Verification becomes much easier with blockchain technology because it is built into the basic functions of the system.
Additionally, blockchain’s decentralized nature means it is tough to hack. Hackers must gain access to every computer on the network and then piece together the data shards they acquire.
Blockchain makes it easy for users around the world to share and access data safely. If you are thinking about implementing blockchain at your organization, consider these advantages and disadvantages before committing to blockchain.
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