Can you remember using the first internet; the dial-up web that produces a grumbling-siren sound when connecting to the internet?
The internet has evolved in the past 30 years – taking us away from the initial forays. Now, almost every person, family, and business use the web. And with smart technology integrations, the internet is becoming an increasingly popular part of our lifestyle.
Our economy is rapidly expanding and increasing the demand from industries and businesses. However, with the reality of cryptocurrency powered by Blockchain, firms can easily perform several operations effectively. And this can be a global economy game changer.
Though Blockchain integrations may seem far from the present, some forecast that it will enable us to reach new heights just like the internet. And while it helped us improve how we communicate and disseminate information, Blockchain can upend how we transfer ownership, verify transactions, and exchange value.
Several professionals and investors are looking into the realization and benefits of Web3 – the next phase of the internet based on Blockchain technology. For instance, PKT.cash says that the internet powered by Blockchain can eliminate centralization and help users monetize their network bandwidth.
A decentralized web might be the next big thing. However, before we talk about its pros and cons, let us have some background knowledge of Blockchain technology.
Blockchain Technology
This technology features digital database encryption shared amongst several users in a broad network. Therefore, transactions are open and can be seen by everyone but cannot be controlled by a single entity – distributed network. This way, transaction logs cannot be altered or infiltrated.
Furthermore, the technology operates on a decentralized system making it possible for all users to access the exact data versions. Also, the system is less expensive and enables faster transaction processing. Visit Coinmarketcap and Coingecko sites to help you obtain a fundamental analysis of the crypto market.
Importance of Blockchain Technology
Before now, businesses used traditional centralized models for data storage, transfers, and other processes. However, we can have more automation and improvements with this technology, enabling firms to focus more on other management aspects. Below are some other benefits:
Transparency
The Blockchain design grants every user access to all transactions that have taken place within it. Therefore, this has enabled participants to trust the network and share information without external involvement.
Saves Cost
Business requires a safe and trustworthy operational system. And even with so much investment, companies might not be able to get a better security system for their business operations. However, blockchain technology makes this possible with the simplest and most cost-effective integrations.
Improves Efficiency
Several businesses use conventional procedures for management, customer care, marketing, and many other business processes. And this can be tasking as human efforts are put in several directions. However, businesses can now automate several processes and free up human resources using smart contracts that allow instant execution of several transactions.
Better Security
Transactions in a Blockchain system are encrypted in a database and cannot be altered. In addition, the system uses a cryptographic technique in which plain texts are converted into unintelligible ones. And with this, the data is protected from hacking during transmission. You can click on https://www.techtarget.com/ to read more about cryptography.
Also, the cryptographic technique is used in creating a unique electronic fingerprint system that we can use to boost security within a network. And because this technology functions without third-party intervention, it offers a background for the decentralized internet. So, let us see some pros and cons of internet decentralization.
Pros of Decentralization
Store and Own Your Data
Just as with cryptocurrency, a decentralized web will provide each user with a unique decentralized identity key (DID). And with this, you can store, edit, transfer, and share your data without relying on third-party data firms.
While big data firms monetize our data in a centralized network, decentralization will ensure that we can own our data, intellectual properties, and wealth. In addition, we will all have a decentralized identity; hence, there will be no demand to have a different password for online operations.
Enhanced Data Security
Today, businesses suffer losses from disruptions caused by cyber-attacks. And in some cases, they lose vital customer data. This is due to weak data-saving models – one with a single point of failure. Therefore, hackers can destroy a company’s database with a single strike.
A distributed network is one with several nodes that carry data fragments. So, to infiltrate such a network, the hacker will have to break down each node in the system. And since there are many of them, cracking such a network is almost unthinkable. You can click here to read more about the blockchain security system.
Expansion
To some people, Web3 is far from reality. However, with a decentralized web powered by Blockchain technology, businesses can work independently on various web projects rather than depend on one company. For instance, the internet is broad but is monopolized by top IT firms calling the shots. However, with decentralization, everyone can have a say and boost rapid development.
Cons of Decentralization
Although a decentralized web is for the better, there are still some limitations we should consider. For instance, there is the issue of management and coordination in every decentralized system. So, what are the cons of a decentralized web?
Lack of Monitoring
A decentralized web goes without the intervention of a third party. Therefore, people can keep interactions away from regulatory bodies. And this can be dangerous as more terrorist attacks and societal menaces can be plotted over the internet.
High Energy Consumption
Saving our data with third-party data firms helps to reduce the number of tasks on a particular system and minimize energy consumption. However, our data is stored on the same network with a decentralized system. And this can increase energy consumption by over 100% or more.
Furthermore, such a high level of energy consumption can crash a system like the Ethereum network crash in 2017. However, experts suggest that running several side chains to perform different tasks can solve this challenge.
Conclusion
How do we secure our data, monetize it, and still use the internet safely? A decentralized web might be our best answer. And with Blockchain technology, we are getting closer to the next phase of the internet. So, learning about it can prepare you for the era to come.
