Why don't central banks trust blockchain technology?

Blockchain is a universal system that will find application in any field. But the banking industry is wary of implementing blockchain for its operations. The developers say that the technology is difficult to implement in the banking system. Keep in mind that you need to process a large amount of data. Technically, the blockchain copies the information to each cell. Each block must store a copy of the state and changes of the entire chain. The cryptocurrency market is unstable, the difference in assets can vary from 20 to 200% during the day. Such jumps cause bewilderment and make you wonder whether to apply the technology, is it so effective? The protocol from developers https://www.lition.io/ offers a public-private blockchain for business.

The next factor that alarms banks is the lack of main management and decentralized control of the money supply. Access to all transactions will be encrypted, this guarantees the integrity of data, but removes the ability of banks to control the situation. There is no way to find out how the money was obtained, how to account for it and how the country's legislation will look at it.

Advantages of blockchain technology

The industry is a promising area of investment. Those who once invested money receive fabulous profits to this day. All participants in the chain are equal to each other and directly transmit data. There are enough positive aspects of the blockchain database, it has no analogues. Indisputable advantages are:

• information is reliably protected;
• transfers are carried out directly;
• there is no supervisory authority;
• costs are kept to a minimum.

Blockchain abolishes the possibility of data substitution, protects the network from hacker attacks as it uses special keys. The system works transparently, helps to track the path to any operation. And this can be done by any network participant. The structure of the blockchain is applied in various fields, its value is in universality and multitasking. It is used with equal success both in the economic sector and in the field of real estate. Blockchain is effective for registers of banking operations, financial transactions.

Disadvantages of Blockchain Technology

Many states and world-class corporations invest considerable sums in the development of the system. However, this does not mean that the blockchain is perfect. The system does not use common protocols, it is vulnerable to malicious actions. Among the other most important cons of blockchain are:

• open and transparent access to information;
• inability to implement multiple platforms;
• slow operation of the circuit, lack of scalability;
• energy-consuming consumer activity.

Nevertheless, the blockchain continues to gain momentum, as it has successfully established itself in several areas and industries. Cryptocurrencies help to simplify the process of trading stocks, make the stock market more accessible. The sphere of finance owes instant transactions to the blockchain with almost no commission. In the banking sector, the blockchain guarantees the safe storage of data, due to the fact that no one can change or forge them.

With extensive research and study, Simon passionately creates blogs on divergent topics. His writings are unique and utterly grasping owing to his dedication in researching for distinctive topics.