For successful operation, Decentralized platforms seem to rely on Blockchain technology. This has led to more interest in this technology. More people are also investing in Blockchain technology as it seems to increase at an astronomical rate. But does the technology solve the endless amount of problems?
After being described as the most advanced distributed and immutable ledger, what does Blockchain actually offer to people? Blockchain allows for easy creation of database management system (DBMS). More to that records stored in Blockchain cannot be changed and can stay forever. The blockchain is the foundation under which Bitcoin which is the most famous Cryptocurrency was built.
There are however some problems with the Blockchain technology. This type of ledger has been in use especially in Banks. The brick and mortar service can store information for an indefinite period. In banks, there is also a DBM technology that offers the same service. Similar to the decentralized Blockchain technology the bank ledgers are also immutable and unchangeable.
DBMS in Banks allows transfer of money from account to account in less than a second. This is similar to Blockchain technology that allows quick transaction time for Bitcoin. Actually, the DBM technology allows thousands of transaction in one second. This is different with Blockchain especially in Bitcoin that takes up to 10 minutes for a single confirmation to be done.
So Bitcoin is founded on the decentralized Blockchain technology. This means that Blockchain does not require Bitcoin but Bitcoin cannot exist without Blockchain. The whole Bitcoin process is synergistic. This means that the components need to work together for proper functionality.
Giving an example of Cheeseburger, the delicious burger is made of Cheese, tomato and Lettuce are Bitcoin. The burning of the burger is what can represent Blockchain which is the Bitcoin Foundation. However in the burger, if you remove the sweet taste you will be left with just two dry buns. The buns are an important part of the burger but not the only part. Similarly, Bitcoin is the component that has been pushing the Blockchain technology ahead.
Actually, Bitcoin can be defined as the future of money. The fact is that Bitcoin is a virtual currency and it’s not controlled by a specific organ. To ensure transaction security minors are used and are paid with Bitcoins. The use of the distributed ledgers is to ensure that no person can control the currency.
If we removed the miners or the currency, then the ledger would be so unsafe. This means that the technology would be far behind other technologies like the DBM.