Can you trust Blockchain for your company ?
Blockchain has grown so fast in the recent year that sometimes your head will spin on what it can do and what it cannot do. Companies must be extremely careful with various consultants or gurus who indicate that using Blockchain technology will be the end all. Consultants are cropping up with impressive frequency in even the most unlikely startup pitches and while blockchain technology does have genuinely interesting and potentially powerful use cases, it has enormous drawbacks for consumer applications that get little mention in media coverage.
As it stands, blockchain is caught between three competing objectives: fast, low-cost, and decentralized. It is not yet possible to make one chain that achieves all three. Fast and decentralized chains will incur a high cost because the storage and bandwidth requirements for historical archiving will be enormous and will bloat even with pruning. For example a good credit card processor can settle a typical $2 transaction for somewhere around 10 cents. Some of the largest online game economies manage more than a million user-to-user transactions per day, instantaneously, with no fees.
Blockchain wallets and their passwords, by contrast, are tied to a file on a user’s hard disk and are absolutely critical to users trying to access the blockchain. There is no real security or recovery when using blockchain so basically You lose your password and you lose everything. This is the nightmare of Bitcoin and Blockchain where an experience for a user that goes thru this will defeat the entire process.
Blockchain is a record of transactions, spreading across the internet as more people use cryptocurrencies. Similarly, DNA is a record of genetic transactions and mutations that spread as life expanded across the earth. Both become more complicated over time as our DNA evolves and new blocks are added to the blockchain.
Blockchain can be a great technology but to place something such as this into a defense or banking system goes a little overboard.