The blockchain space is in full bloom. But, while the revolutionary technology definitely has some strong points, it isn’t a silver bullet nor free of risk.
We know how it seems as if the blockchain method of storing and organizing data is the perfect solution for all. It’s popularity has gone to an extend where people have started calling it the next big thing after the internet. Click here to read all about it.
While others are saying that it might be the answer to all your IT security needs and database. If you listen to all the blockchain enthusiasts, for them its better than night baseball! So, the real question is it necessary to deploy a blockchain solution? Should you be really worried of being left behind? Is a blockchain strategy really necessary?
What is Blockchain?
To start things off from the right foot. Let’s look into what blockchain really is? Blockchain isn’t magic. It’s a bookkeeping method, in this case its a digitally distributed ledger. The hype is all about how the blockchain is safer than other different types of record keeping because its said to be more secure and reliable. All of these claims are the half truth.
If you really look at the implementation, the blockchain is a collection of information which is organized into blocks. Every block is created through a process of solving a cryptographic puzzle, that basically depends on the previous block in a chain. This actually ensures that you can’t change the contents of any block because that would change cryptographic value. This in turn would affects the values of all the other subsequent blocks in the chain.
Some Blockchain Myths
The applications of blockchain is used to define the Bitcoin cryptocurrency. It’s assumed that the entire process of creating a Bitcoin ensures the accuracy of the ledger. But, you should know that just because there is a blockchain entry it doesn’t always make it accurate!
It seems all complicated. So. lets just simple down things for you. The fact is that the blockchain can actually be much more than just a financial instrument. The blocks in the change can contain any kind of information which can be harmful, malicious or deliberately wrong.
The most common myth circling the internet has got the most hype is that the blockchain immutable and safe, however access to it is not. A blockcain used by any company needs to be super protected as a company’s own network is. It can be a catastrophe if a hacker finds its way into it!
Caution is Key
However, it does not mean using a blockchain is not a good idea. If you’re a person who needs a way to keep data of any kind which is well protected and instantly available to authorized people. Then using a blockchain makes sense.
What you need to remember is that its not a silver bullet! Before using blockchain one needs to decide what it’s going to be used for, how will it be controlled, who will have access to it and how will it be protected.