Questions & Answers about Blockchain
10 January 2019
What is blockchain ?
Blockchain is an alternate computing model that guarantees to process transactions quicker, cheaper and securely than any traditional methods. In easy words, it's a shared, distributed ledger that allows participants (i.e. individuals and things) to interact with one another with no central authority.
To give you a simple example, your entire medical case history may be centrally recorded and maintained in a blockchain ledger which might enable secure and traceable access by approved hospitals and health care suppliers.
In the long run, blockchain has the potential to disrupt the way business is done. And whereas there's tremendous buzz around blockchain, it's necessary for businesses to know and harness the technology and be ready for the potential changes.
How mature is the blockchain technology?
Like with all alternative rising technologies, we must always proceed with caution. Several uses of blockchain technologies aren't totally developed, are untested, and can need early adopters to just accept considerably enhanced risk levels over next 5 to seven years.
The sector is developing commercially and supporting this new technology isn't totally easy nevertheless. Firms are jockeying for attention, as well as skilled services companies and startups, requiring careful, multi-layered analysis. What is more, this technology has till now operated outside traditional legal, accounting and institutional governance frameworks not in line with long-standing operating practices.
Nonetheless, it's vital that we have a tendency to perceive the potential application of blockchain. Launching cheap , targeted proofs-of-concept would be very helpful to realize active expertise and verify the business case for additional exploration. However, massive investments in blockchain ought to be avoided within the near-term given the dearth of maturity of the technology.
Is blockchain secure?
Blockchain itself is inherently secure because it is predicated on current encoding technology that is extremely tough to crack. In fact, it's as secure as the other certificate encrypted technologies, that are used extensively today.
The potential security problems arise within the actual use of blockchain by alternative systems. Consider it just like the current use of credit cards for on-line purchases. The encrypted dealings over the net to a retailer’s web site is sort of safe; but, if somebody has stolen your mastercard information, the fraud occurs. We regularly hear stories of how retailers are hacked and card info is stolen. Thus it's not the net dealings (i.e. blockchain) that's unsecure, it's the safe storage and usage of the cards (i.e. electronic wallet) that's in danger.
Despite these risks, blockchain is here for long haul and can't be ignored.