Advantages & Disadvantages of Blockchain in Hindi 🔥🔥

Summary

In this video, the speaker discusses the advantages and disadvantages of blockchain technology. The pros include no single point of failure, elimination of middlemen, cost reduction, data immutability, and an open, permissionless network. On the downside, blockchain requires verification from all nodes for each transaction, consumes significant storage and power, and can lead to storage problems as the blockchain grows. Additionally, becoming a full node requires meeting specific storage and memory requirements. Despite its drawbacks, the decentralized nature of blockchain makes it an appealing solution for many applications.

Takeaways

• 😀 Blockchain operates on a decentralized network, meaning there is no single point of failure, unlike centralized systems where a server crash can cause a system-wide failure.
• 😀 Blockchain transactions do not require middlemen, reducing the need for intermediary servers and cutting down on costs for users.
• 😀 By eliminating middlemen, blockchain ensures that the full amount of a transaction reaches the recipient without any deductions for commission or service fees.
• 😀 Once data is added to the blockchain, it becomes immutable—meaning it cannot be altered, edited, or deleted, ensuring data integrity and security.
• 😀 Blockchain networks are open to everyone, allowing users to join without needing permission from any central authority.
• 😀 For each transaction, verification from all connected nodes is required, which can slow down the process and increase the system's resource consumption.
• 😀 To participate in a blockchain network, nodes need to store a full copy of the blockchain, which can require significant storage space and system resources.
• 😀 Blockchain systems, particularly those using proof-of-work mechanisms, can consume a lot of electrical power, raising concerns about their environmental impact.
• 😀 Blockchain's growing data storage requirements can lead to scalability challenges, as the increasing size of the blockchain impacts the performance and speed of nodes.
• 😀 Blockchain transactions are highly transparent and traceable, ensuring accountability in both financial and non-financial transactions.
• 😀 While blockchain offers significant advantages in decentralization, transparency, and security, its energy inefficiency and storage issues remain key barriers to its widespread adoption.

Q & A

What is the first advantage of blockchain mentioned in the script?

The first advantage is that blockchain has no single point of failure. In a decentralized network, if one node fails, the rest of the system continues to operate without any major disruptions.

How does a centralized system differ from a decentralized blockchain system in terms of failure?

In a centralized system, if the central server fails, the entire network can be affected. In contrast, blockchain’s decentralized system ensures that even if one node fails, the others continue functioning, preventing system-wide collapse.

What does the term 'middle server' refer to in the context of blockchain transactions?

A 'middle server' in traditional systems is an intermediary that facilitates transactions, such as a payment gateway. Blockchain eliminates the need for such servers, allowing direct peer-to-peer transactions.

How does blockchain reduce transaction costs?

Blockchain removes middlemen, such as payment servers, which typically charge fees. Without these intermediaries, the entire transaction amount is transferred directly between the parties involved, lowering transaction costs.

What is meant by the immutability of blockchain data?

Immutability means that once data is stored on the blockchain, it cannot be altered, deleted, or modified. This ensures the integrity and security of the information.

Why is blockchain described as an open network?

Blockchain is considered an open network because anyone can join and participate without needing permission from any central authority or governing body.

What is the main disadvantage of blockchain in terms of transaction verification?

A major disadvantage is that every transaction requires verification by all the nodes in the network, which can be time-consuming and slow down the process.

What are the hardware requirements for running a full blockchain node?

Running a full node requires significant hardware resources, including memory and storage to store a complete copy of the blockchain’s data, which could be a challenge as the blockchain grows.

How does blockchain mining impact electricity consumption?

Blockchain mining, especially in systems that use Proof of Work, consumes a substantial amount of electricity and computing power due to the need to process complex computations for adding new blocks.

What storage issues are associated with blockchain?

As blockchain grows, the storage required to maintain a full copy of the blockchain increases. This leads to storage problems for nodes that need to hold the entire blockchain data, which can become unsustainable over time.