Opportunities and Threats in Blockchain – The continuous emerging nature of the blockchain technology has attracted and allowed individuals from all fields ranging from commerce, energy, law, health governmental bodies, firms etc to employ the advantages of the technology to aid their daily operations.
However, for every innovation, the need for SWOT analysis can’t be overlooked. In this discussion, the Opportunities and Threats of the blockchain technology will be talked on;
OPPORTUNITIES IN BLOCKCHAIN
Of course, the aim of bitcoin which was the first result of blockchain technology was provision for better currency than the FIAT Currencies. This has led the misconception that cryptocurrencies was all that is to bitcoin whereas the technology can be applied to all areas like the traditional cross-border transaction involving freight forwarders, customs authorities that is slow, expensive and time-consuming. Online transactions are easier and faster. The third-party validation costs are also reduced.
Since the technology allows all entries on a single data source that is available to all participants on the network thereby storing all documents and its tracks, transactions, agreements etc on a computer which then reduces administrative costs and delays. Information flow from manufacturers and end-users is enabled with the aid of the peer to peer network where product information is shared instantly to all participants on the network.
The decentralized nature of the blockchain ensures data accuracy and makes unauthorized data tampering difficult. Blockchain can be utilized in government for identity management systems, automated bookkeeping, sensitive information passing, registering and encrypting all types of assets, managing intellectual properties, minimize corruption risk, etc. Processes involving manpower can be run on the digital ledger with intuitive smart contracts. In all, blockchain technology aids in the removal of; human error, traditional methods, intermediary roles, third party and aids transparency and Genuity.
THREATS IN BLOCKCHAIN
The threats in almost every area of the blockchain technology are the same ranging from legal protection, energy supplies, job protection, environmental conditions, security etc.
Although the availability of several nodes on the network makes alteration of past records impossible but not so in the event of a 51% attack. A 51% attack is a situation where a node or group of nodes that control up to 51% hashing power of a blockchain can combine computing powers to alter records on the network. A 51% attack is disastrous to a blockchain.
ELECTRICITY AND ENVIRONMENTAL REGULATION
The cost of electricity required to run a large scale blockchain is immense. The heat generated becomes waste with a requirement for large cooling conditions. If enough energy isn’t invented, the burden grows as the technology grows, then there is likely to be a problem.
The higher the growth in the size of a blockchain the more difficult a chain becomes to handle and require more security.
SECURITY AND PROTECTION
The blockchain technology is highly decentralized and this also stands as an invitation to theft.
Data’s security needs to be enhanced. Also, there is a rigid legal framework yet, protecting users
There have been a lot of arguments that the improvement in the technology making provision for application in every area will lead to lots of professionals no longer having a job. The increase in the acceptance of bitcoin and blockchain and it’s advancement might further increase or reduce the threats and opportunities in the technology application.