Blockchain technology might be of a bad vision for the future
Apr 11, 2018 Posted / 977 Views
The Blockchain Technology isn't an ultimate solution for all of our problems. No doubt that this Technology was invented to bridge the gap of Trust which was an inevitable problem of the century. But, According to recent observations made, it has been concluded that systems with norms, trust, and Institutions are far better than the idea of blockchain which is completely based on criteria that there is no need for a third party trusted system. Below are some of the reasons explained, as to why blockchain is not the ultimate technology.
Most of the people these days have a misunderstanding regarding the blockchain technology and have come forward with their opinions that the blockchain technology can be used to apply in many other entirely different fields like artificial intelligence, internet of things etc.
Some of the blockchain enthusiasts even suggested that the type of behavioral pattern tracking done by AI, used by Facebook and Google could be effectively replaced by blockchain technology. This has made it completely evident that people itself are not sure about what a blockchain technology actually is. Blockchain technology is simply a data structure with a linear transaction log connected with each other by hashes. The blockchain is typically copied on to different computers and the people who add new transactions are known as miners.
There are two major features of blockchain Technology. One of the features of the blockchain technology is that whenever a particular block on a blockchain network is altered then all the Blocks after it gets invalidated. The result of which is, a very solid and trustable record. Also, Blockchain network itself is designed in such a way that if a particular transaction is invalid, it is mathematically detected and where there is no intervention of any regulatory or government to enforce the rules.
Also not that long ago Walmart had introduced a feature wherein the bananas and mangoes of Walmart were tracked from it's very beginning of production in the farms up to the store. However, they had to take down this concept due to the Logistic problems that arose. Once again to attract people's attention towards Walmart, it again started the same technology but this time using the blockchain network. Even this time the technology couldn't succeed in a right way because the mango workers didn't like the data entry work.
Time is the only constraint that adds up to almost all the concepts. A particle Technology which was completely appreciable might change its state and become completely disruptive if the time factor is added to it.
Now we have to assess whether the Blockchain Technology will stand the test of time or not. The fact that any data stored on the Blockchain network is very difficult to be played with. But there are loopholes in it if the data itself uploaded on to the Blockchain is a manipulated one.
Let us understand, through an example. Suppose that you have to buy a book on the Internet and you decided to do it through a smart contract. Traditionally once you have given your money to the vendor there is no trust that the vendor will give the book to you or will give the exact book that he was supposed to give. in the online system we tend to trust a third party like the Amazon. But in blockchain technology, we have to trust the smart contract. For your safety, you check the smart contract thoroughly and couldn't find any bug. Now just imagine that if you are not a great software analyzer, you might have missed something in checking the smart contract and once the transaction was undertaken you become a victim of a fraud. This is the practical scenario, as most of the users are not software analyzers.
When the blockchain technology is supposed to be trustworthy, from the recent days it is evident that blockchain Technology has become less trustable. Within and decade itself the three biggest cryptocurrency exchanges have been hacked. It is also estimated that the fluctuations in the Crypto market are 10 times more than the fluctuations of the worst markets.
At the ultimate lower levels the Technology just can't help. for instance, a person who is spraying pesticides on the mangoes can still enter the data into the blockchain as organic, a corrupt government can create blockchain and allocate multiple addresses to their cronies. Therefore the trust is created only theoretically.
Somalia is experiencing a crisis recently. Where it's weak government is unable to enforce laws, thefts are rampant, safe banking is unreliable. The Blockchain Technology can't be implemented in such a situation of a Nation. Currently, almost 93% of the Bitcoin is mined by an association of various companies, which themselves don't use smart contracts for their payout criteria. Instead, they try to induce trust by giving instances of their long-term stability and reliability which makes them look more trustworthy middle-men.
In a nutshell people from all walks of life including investors, businessmen, leaders, managers, etc. are expected to invest their time and energy in finding better and, long-lasting ways to induce trust in people. Instead of misleading them by trying to give them shortcuts to trust building. Mind it that human beings are social animals and any kind of relationship just cannot be induced in them instantaneously.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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