BlockChain: An Emerging Medium

BlockChain technology is an immutable, distributed and decentralized peer to peer ledger mechanism that ensures the data is recorded using cryptography anywhere instantly. Information is stored in 1 MB blocks and each block is linked to the previous one making it a chain.

Is it not what a database does too? True, But a database is centralized; and a blockchain is decentralized where the ledgers are distributed on multiple nodes of the network, thus more secure. 

Even though cryptocurrency is the major stakeholder in the users of blockchain, there is scope for the utilization in Real Estate title issuance, Supply Chain management, Regulatory Compliance and Audit, Food safety, medical records etc.

Like every other technology, Blockchain has its benefits and limitations too.

Advantages of BlockChain:

• Open: One of the main advantages is that it is accessible to everyone, and requires no permission from any entity to enter the distributed network.

• Transparency: A ledger records transactions i.e., recording money transfer, medical records, contracts etc. As the ledgers are distributed among all the nodes of the network, every transaction in the chain is transparent; thus each transaction is legitimate. 

• Immutability and traceability: Once data has been registered in blockchain, it is extremely difficult to modify it or remove it; making it a great technology to store data where audit trails are required. Data integrity is maintained, as every change is recorded and is permanent on a distributed public ledger.

• Security: Every block is encrypted and secured with private and public keys, making it tougher for a hacker to disturb the chain. 

• Free from Censorship: Blockchain technology doesn’t have any single authority to control over; but is based on trustworthy nodes for validation and consensus protocols that approve transactions using smart contracts.

• Verifiable: The information is stored on the blockchain in a decentralized manner using zero-knowledge proof where every user can prove the correctness of the data without revealing any details. 

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  Drawbacks of Blockchain:

• High energy dependence: It consumes more energy than any centralized cloud based system due to mining activities. Maintaining a real time ledger is the main reason for the high consumption of power; as every time a new node is created or a new transaction is done; it connects to each and every node in the blockchain. 

• Scalability: Due to the fixed size of the block, it is difficult to store information on one block beyond a couple of transactions. 

• Expensive implementation: Depending on the energy consumption and storage requirements of the block chain, it is highly expensive to implement the technology for industrial purposes.

• Immutability can not exist without fair distribution of network nodes.

There is no single technology that fills all requirements, and it’s the same with blockchain too. Being a young technology, there is still a lot of scope for development and futuristic entities continue to perform due diligence and conduct deep dive analysis to see if the new buzz fits their requirements. 

About Kanerika
Kanerika is a niche consulting firm building efficient enterprises with deployment of automated, integrated and analytics solutions. Kanerika enables efficient enterprises through its unique digital consulting frameworks and AIOps enabled compostable solution architecture. We partner with some of the top vendors to solve some of the critical data and process related challenges. We help some of the top brands across the globe in increasing their speed to respond in evolving market conditions, reducing their cost of operations, empowering them with the right tools and insights for effective decision making.