Page 44 - Banking Finance November 2021

ARTICLE

many Blockchain technologies.
The most popular ones bitcoin
miner easily crossed 100's GBs.
So it is not efficient in data
storage, which can lead to
storage problems for multiple
nodes who want to become apart
of the network.This is one of the
biggest disadvantages of
Blockchain.
Y Not completely
secured: Blockchain technology
is more secured than other
platforms but there are different
ways the Blockchain network can
be compromised e.g. (a) 51%
attack: In the 51% attack, if an
entity can control 51% or more
of the network nodes, then it can
Y Reduced cost: As Blockchain offers a decentralized result in control of the network, which can lead to
platform. So there is no need to pay for centralized security threats.
entities or intermediaries' services. Hence costs are
reduced Y Cost and implementation struggle: Cost of
implementing blockchain technology is huge. These are
Y Accessibility: Enterprise Blockchain technology enables costs associated with hiring developers, managing a
organizations to use different levels of accessibility. team that excels at different aspects of Blockchain
Y Faster Transaction: Organizations can do faster technology, licensing costs if opted a paid Blockchain
transactions through Blockchain and can save time. solution and so on.
Y Automated reconciliation: Account reconciliation can Future of Block Chain (Prediction for
be automated.
2021)
Y Transparency: The transactions done are transparent The global pandemic has given a formidable boost to trends
and hence, easy to track.
that were already in place.
Disadvantages: Under the present global pandemic situation and because
Y Blockchain is not a distributed computing system : of the many industries going through massive makeovers in
In Blockchain network, there is lack of synergy, mutual response to the changes in the business environment, most
assistance and paralleling for each transaction of the enterprises are investing more in Research &
Y Scalability is an Issue: Transactions are completed developement projects for achieving blockchain initiatives.
depending on the network congestion. This problem is Blockchain can be proven a crucial player in driving the digital
related to scalability issues with Blockchain networks. transformation. Since blockchain technology has been rightly
In simple words, the more people or nodes join the touted as the technology of the future, it is important to
network, the more would be the chances of slowing focus on blockchain future predictions. Some notable trends
down. that could dictate the Blockchain industry's potential state
in 2021…..
Y Blockchain cannot go back : Because the data is Y Blockchain and Governance applications will
immutable (Fixed),Blockchain cannot go back
increase: One of the foremost trends that could
Y Blockchains are sometimes inefficient: There are dominate the future of Blockchain in 2021 is the

44 | 2021 | NOVEMBER | BANKING FINANCE