the benefits and limitations of using blockchain technology in the project.
A blockchain is a network of decentralized and distributed data (ledger), meaning the users share the ownership and management of the network through computer nodes. As a database, blockchain stores information in a digital format.
Advantages Of Blockchain
• Immutability. Blockchain supports immutability, meaning it is impossible to erase or replace recorded data. Therefore, the blockchain prevents data tampering within the network.
• Transparency. Blockchain is decentralized, meaning any network member can verify data recorded into the blockchain. Therefore, the public can trust the network.
while a traditional database is centralized and does not support transparency. Users cannot verify information whenever they want.
• Censorship. Blockchain technology is free from censorship since it does not have control of any single party. Therefore, no single authority (including governments) can interrupt the operation of the network.
• Traceability. Blockchain creates an irreversible audit trail, allowing easy tracing of changes on the network.
Disadvantages Of Blockchain
• Speed and performance. Blockchain is considerably slower than the traditional database because blockchain technology carries out more operations. First, it performs signature verification, which involves signing transactions cryptographically. Blockchain also relies on a consensus mechanism to validate transactions. Some consensus mechanisms, such as proof of work, have a low transaction throughput. Finally, there is redundancy, where the network requires each node to play a crucial role in verifying and storing each transaction.
• High implementation cost. Blockchain is costlier compared to a traditional database. Additionally, businesses need proper planning and execution to integrate blockchain into their process.
• Data modification. Blockchain technology does not allow easy modification of data once recorded, and it requires rewriting the codes in all of the blocks, which is time-consuming and expensive. The downside of this feature is that it is hard to correct a mistake or make any necessary adjustments.