Blockchain Technology

A blockchain is a type of database. Blockchain technology is most simply defined as a decentralized, distributed ledger that records the provenance of a digital asset.


  • Accuracy of the Chain – Transactions on the blockchain network are approved by a network of thousands of computers. This removes almost all human involvement in the verification process, resulting in less human error and an accurate record of information.
  • Cost Reductions Blockchain eliminates the need for third-party verification and, with it, their associated costs. It also reduces transaction fees
  • Decentralization Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers
  • Efficient Transactions Blockchain is working 24 hours a day, seven days a week, and 365 days a year. Transactions can be completed in as little as ten minutes and can be considered secure after just a few hours. This is particularly useful for cross-border trades, which usually take much longer because of time-zone issues and the fact that all parties must confirm payment processing
  • Private Transactions It does not reveal any personal information.
  • Secure Transactions Each block on the blockchain contains its own unique hash, along with the unique hash of the block before it. When the information on a block is edited in any way, that block’s hashcode changes—however, the hash code on the block after it would not. This discrepancy makes it extremely difficult for information on the blockchain to be changed without notice.
  • TransparencyMost blockchains are entirely open-source software. This means that anyone and everyone can view its code. This gives auditors the ability to review cryptocurrencies like Bitcoin for security.
  • Banking the Unbanked Perhaps the most profound facet of blockchain and Bitcoin is the ability for anyone, regardless of ethnicity, gender, or cultural background, to use it.


  • Blockchain ledgers can grow very large over time. The Bitcoin blockchain currently requires around 200 GB of storage
  • Once data has been added to the blockchain it is very difficult to modify it.
  • Blockchains use excessive energy
  • Mining does not provide network security
  • Blockchain entries do not last forever or are not immutable
  • Scalability remains blockchain’s weakness
  • Blockchain can breed complexity

Way forward
Despite the downsides, blockchain technology presents some unique advantages. With more research and development, we can try to overcome the disadvantages. Some companies that have already incorporated blockchain include Walmart, Pfizer, AIG, Siemens, Unilever, and a host of others. For example, IBM has created its Food Trust blockchain to trace the journey that food products take to get to its locations.

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