Is 'blockchain' turning out to be an overhyped technology in the 21st century?
In the words of noted economist Nouriel Roubini, blockchain can be defined as one of the most overhyped technologies ever produced. It is the technology behind cryptocurrency. Bitcoin is one of the first applications that work on the principle of blockchain. It is tamperproof and safe as it’s a public ledger of bitcoin transactions. The transactions that are made on bitcoin blockchain, need verification from various parties. The transactions are verified by the so-called miners who solve complex mathematical riddles by using high-powered computers.
Bitcoin is a decentralized network, which is the reason blockchain is often known as distributed ledger technology. Big financial institutions are exploring different ways to ensure bitcoin continues to be in use.
Some advocates believe that bitcoin can speed up some of the processes like legal contracts, cross-border money movement and back-end processes in big firms. However, Nouriel Roubini popularly known as Dr. Doom however isn’t convinced because of his pessimistic economic outlook. In a column on the Project Syndicate website, he disregarded the proposed advantages of blockchain claiming the blockchain application to be confusing to most of the people. He went on to say that blockchain does not have the knack to replace some of the existing systems that banks use.
One of the promising features of blockchain technology is that it cuts out huge amount of official procedure. For example, contract between two to three parties can be implemented using blockchain. Here, only a single document is required to track all the changes carried out by the involved parties. Once the involved parties agree to the conditions, the contract gets executed. This example is one of the appropriate use cases as touted by Ethereum.