Blockchain vs Cryptocurrencies – In recent years, blockchain technology has gained significant recognition due to the emergence of cryptocurrencies such as bitcoin. The security of this technology is what makes the concept of bitcoin so popular.
So, what are the advantages of blockchain and cryptocurrency? Is there no harm in investing in cryptocurrency? Come on, see the following explanation so that you are not curious anymore!
Blockchain vs cryptocurrency, which is more profitable?
While its appeal and popularity have exploded over the years, there are plenty of people out there who don’t really rely on this technology. They think that the disadvantages of blockchain outweigh the advantages. To see this issue in detail, consider the following significant advantages and disadvantages!
Advantages of blockchain
Despite being a new technology, blockchain has proven its mettle. Here are some of the advantages of using blockchain:
- Minimal chance of fraud. Because it works like an open source book, every transaction is published in the public domain. Miners around the world are constantly monitoring transactions to keep them safe.
- Decentralization. Blockchain uses a distributed network of nodes to store blockchain data. This system makes data highly resistant to technical failures and ensures it remains secure.
- Stability. Once your business data is registered into the system, it is almost impossible for anyone to delete or reverse it. This is the reason blockchain is considered one of the most reliable and efficient technologies.
- Trusted. In most of the payment systems, the transaction does not occur between the two parties. Third parties are more often involved in these transactions and work as intermediaries.
Advantages of cryptocurrencies
Similar to blockchain, cryptocurrencies also have several advantages. What is it?
- Speed and convenience. Cryptography was deliberately created as a solution to the complexity of conventional financial and banking transactions. With cryptocurrency, you can make transactions easily and practically.
- Profit. Lately, cryptocurrencies are in great demand and busy since the popularity of bitcoin. Many people are interested in investing in Cryptocurrencies because they are considered to be able to provide large profits for investors.
- Security. Well, in addition to the big profits, investing in cryptocurrencies is considered safer because this digital currency is secured with a cryptographic system so that it is not easily counterfeited and hacked.
- Avoid counterfeiting money. Counterfeiting banknotes is nothing new. Crimes such as carding are also prone to happen to debit and credit card users. Well, this cryptography is designed so that it is not easily hacked by others.
So what are the disadvantages of both?
If you want to invest, also consider the risks that may occur. Here, Jagoan Hosting has summarized some of the shortcomings of blockchain and cryptocurrencies that you can consider. Listen to the end!
Disadvantages of blockchain
- 51% attack. Among all the most talked about potential attacks, the 51% attack is one of the most discussed. This attack can occur if someone manages to control more than 50% of the network hashing power. If this is the case, the attacker will have the power to disrupt the entire network by modifying or excluding transaction orders.
- Modify data. Once you add data to the system, it becomes irreversible.
- private key. If the user loses the private key, it will effectively lose money and there is no way to fix it.
- Storage. Blockchain is now growing faster than the size of a hard drive. That means, the network runs the risk of losing nodes if the ledger size becomes too large for someone to download and store it.
Disadvantages of cryptocurrencies
With the various advantages it has, of course cryptocurrency has its drawbacks as well, such as the following:
- Violation of the law. This is due to regulations in several countries that prohibit their existence for transactions. This rule also applies in Indonesia. Whereas investing in digital currency can be a good opportunity to generate multiple profits.
- High volatility. The value of this currency can suddenly experience a drastic increase, as well as a decrease in its value which can also occur at any time.
That’s roughly the advantages and disadvantages of blockchain and cryptocurrencies. Where are you interested in investing, friend?
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