Benefits and Limitation of Block chain| Advantages and disadvantages of blockchain

Block chain technology could eliminate fraud and Errors, increase efficiency and security, reduce cost Associated with paperwork and build sustainable Inventory management, more specifically the Benefit of block chain include:

• Disinter mediation- This refers to the Reduction In need for intermediaries or 3rd parties within The block chain process. Traditional Centralized Process require humans or additional technology To assure trust, with block chain this is built in By Default.
• Non-reputation - This relates to the integrity of The block chain where parties cannot deny or Dispute their addition to the block chain due to The integrity of the transaction history.
• Automation- The working mechanisms of block Chain can replace labour tasks if the specific use Utilizes automated interactions between parties.
• Streamlined process- under block chain,    Business process will became more standardized, Transparent and streamlined as they redesigned For the transition from traditional technologies.
• Processing speed-  The increase use of Automation with block chain process when Compared centralized architectures is likely to Deliver significant execution speed benefit for Specific use cases.
• Cost reduction - The net effect of Disinter-mediation and automation is a reduction in cost For those applications that can take advantage of Block chain technology. 
• Trust- Block chain effectively replaces trust in Humans with verification and trust in Technology And associated protocols. This is likely to be a Significant business change from current Working Practices. Trust in the integrity of security and Payment processing could evolve into a Commodity as block chain becomes ubiquitous And  costs begin to fail.
• Increased technology awareness- This is Perhaps A side benefit of implementing block Chain, but via the increased awareness and use Of This technology, new applications and new Understanding is developed. 

 

          

The following are among the leading limitation of Block chain:

•  Lack of privacy- Each node in the network Maintains the complete history of the networks Transaction data. This maybe an attribute for Specific applications and an advantage in a Security context , but a limitation for use cases where privacy is a necessity. 
• High costs- The underlying processing of the Block chain where all the transaction history. is Replicated across all nodes, is computationally Expensive. This attribute has security advantages But can be a limitation for large networks.
• Security mode- Block chains use public key Encryption for transaction authentication and Execution. This process although very secure, requires the use of a public and a private key. If In The event that a party loses or unwitting  publishes their private key, the system has no Safety mechanism to provide additional security.
• Flexibility Limitations- The immutable Append Only characteristics of block chain ensures the Integrity of transactions are assured, but can act as A barrier to use cases that require changes to Transactions.
• Latency- The principle of all nodes within the Blocks of ensures the networks security Credentials, however, the addition of new blocks And subsequent transaction records is at present Computationally expensive.
• Governance- The distributed nature of the block Chain architecture offers distinct advantages for Specific use cases but can be a significant Limitation for overall control and governance by Oversight based organization.