The main difference between blockchain and other transaction ledgers is that it is not stored in any one place. It is distributed among several thousand and hundreds of thousands of computers (nodes) in the world that perform the task of verifying and transmitting transactions and automatically receive an updated copy of the blockchain. From this main characteristic of the technology (distributed ledger), a number of its properties follow, which can be called advantages.
Speaking about the financial system, we can say that intermediaries in the form of banks are generally not needed when conducting financial transactions. This allows many to naturally conclude that with the further introduction of blockchain technology, the need for credit institutions will disappear.
Despite all the advantages of decentralized technology, blockchain also has disadvantages. We list some of them.
Lack of proper regulation at the legislative level. Now the legislation of different countries regulates those areas where it is possible to introduce blockchain in the future, but in the future most of them are aimed at developing the idea of the principle of a centralized (and, therefore, managed) registry. In Russia at the moment there is a working group of the Economic Council under the President of the Russian Federation in the direction of “Digital Economy”. So far, there is no clear vision of what the digital future of our country will be.
The technology is too new. It is difficult to assess the real value of the emerging technology.
Danger of use. The blockchain provides for digital currency as settlements for electronic transactions, mainly bitcoin, which, among other things, can be used by people for illegal purposes. In this regard, the Russian authorities, in order to protect citizens and not endanger the national economy, are discussing the possibility of creating a crypto-ruble, and the Central Bank intends to prohibit payments in cryptocurrencies in the country.
Experts, in particular, the creator of the Ethereum blockchain platform Vitalik Buterin, believe that currently there are the following types of blockchain:
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