preview

Essay On Blockchain

Better Essays

Blockchain Technology supports a distributed ledger system and maintains a growing list of records that are confirmed by the participating people. In blockchain framework, each transaction is recorded in public ledger and stores the information of the transaction. In Current scenario, all the currency transactions between persons or entities are centralized and controlled by some other organizations (Interoperability team). Transferring money will needs bank and merchants who process the payments and they charge fee for each transaction. This is the common phenomenon in every domain and this complexity is simplified by Blockchain technology by creating decentralized environment where no interoperability team is required to control the …show more content…

With this all nodes will be linked to each other and will form as a chain and this can be called as blockchain. Since blockchain decentralized framework by removing third party involvement and by involving only participating entities and posting the transaction to the public ledger. The main advantage of blockchain is once transaction is committed, it cannot be fabricated. Because of this reason, blockchain will address data integrity and security characteristics. So, most of the financial and healthcare sectors started implementing bitcoin API’s and block chain services respectively. Apart from advantages it has Technical challenges and limitations to deal and overcome. White Paper: There are seven challenges and limitations for block chain technology adoption: Throughput: Currently bitcoin network can process maximum of 7 transactions per second whereas other existing processing systems like VISA and Master Card processes nearly 2000 transactions per second. This needs to be balanced and improved in the network. Latency: bitcoin network is currently taking 10 minutes to complete one transaction and in other systems it takes only few seconds to complete the transaction. Size and bandwidth: At Present the blockchain size is 50000MB and in future blockchain tps is increased to similar systems tps, then it requires 214PB each year. Blockchain community each block size will be 1MB. If more

Get Access