Life with blockchain:
The blockchain is a digital platform where all transactions of information or funds or data take place and stored. Since the time of blockchain came into existence, transfer of digital currency in the form of cryptocurrency has become easier and more feasible. Blockchain supports all kind of cryptocurrency and it allows the user to have an unrestricted usage and meet all their requirements.
Blockchain has many pros such as transparency in operations, borderless transactions, no central authority to monitor operations, etc. Technology always changes and there are groups or individuals who always pose a threat to it causing blockchain technology problems. When a new technology is invented, it is always vulnerable to different kinds of threats. These threats may include security breaches or network connectivity or platforms that are made similar to the blockchain, etc.
With new technology trends and the risks that come along with it, people always feel reluctant to use a new technology or new technological method. This is because of fear of losing privacy or data or money to blockchain security vulnerabilities. One has to know both the pros and cons of a technology before either investing in a project or practicing them. In this current world, keeping one eye opened is always safer than keeping both eyes closed. Following are some blockchain risks.
Risks carried by blockchain:
There is no central authority to monitor or hold responsible when things go south. There is a peer to peer connection and this platform runs on the decentralized network which his susceptible to malpractice if the digital project is not reliable.
Technology changes are never constant, they keep changing with new inventions. This makes the user and the developer have a constant need to adapt to those changes. This constant adaptation leads to increased maintenance and operating costs.
There are risks involved factors that are essential and known to the developer and user. These factors are the risks of setting up, the cost involved in it; development costs involved in building a decentralized network as well as the programming of the platform.
They also involve factors and variables such as rules and regulations to follow and the limitations that come along with it. For example, situations like where the building of a platform and trying to give access to a place where there is no internet access. This leads to risks of setting up a new internet connection to the place. Here, if the vetting process is not done properly, the number of loopholes will increase which exposes the vulnerability of the network. Expected risks are the most common place where blockchain security risks may arise. So, it is important to double check everything is according to plan and standards fixed.
Developing a decentralized network requires a lot of resources ranging from knowledge, software to hardware. All these involve costs of production and development including maintenance. The important risk in development is the platform integration and building payment platform.
In platform integration, the developer needs to make sure that the blockchain is compatible with all blockchain user device. This demands heavy testing and numerous trials to fix bugs which requires a lot of time and money.
In building a payment platform the developer needs to make sure the network is completely secure and there is no loophole for hackers to get in. This means the network has to be scrutinized every bit of block and data more than once which again demands time and money.
When blockchain was developed and launched, it was fresh and a new concept for many users around the world, and it is still! Both developers, as well as users, will not have an idea as to how the environmental circumstances will affect the network platform. Likewise, there any many other unaccounted factors which might affect the performance of blockchain. This will be learned as the technology evolves.
For every new technology only when it is exposed to different circumstances and environments, the developer can learn from its feedback and usage. When blockchain is launched for access to unknown markets, it also means that the blockchain is vulnerable to new threats. This influences the blockchain technology opportunities and risks both.
Lack of knowledge in new markets and unexplored weakness is a risk that is incurred at a high cost. But once learned, the new knowledge adds value to blockchain making it stronger and reach furthermore boundaries.
The blockchain is a developing new technology and there is more yet to be learned and updated. It is a constant developing platform and with all changing technologies, the operational time or transaction time rate is lower than the demand rate. It is like the demand is more than the supply and this results in a risk of losing data due to the interrupted transaction or slow connection. Developers constantly try to reduce this risk but there is still a long way to go.
Over to you: Creating wonders but is it worth the risk?
Everything worth investing always has a risk. You become a part of the community and you contribute your share to reduce these risks and grow along with the growing technology. One cannot expect everything to go as per plan in the field of technology but you can definitely be prepared. These preparations include making your own research and asking the right questions before making your investment. This ensures more transparency between you and the developer.