Philosophical Arguments against Blockchain
The rapid development of a field uncovers many of its flaws and blockchains are no exception to this. Blockchain networks have environmental costs. The encryption and mathematical proofs require great computing power and thus have CO2 emissions which are off the charts. Bitcoin claimed that the energy consumption to keep its network running was more than that of 159 countries. The complexity of Blockchain technology makes it difficult for an ordinary man to understand its many wondrous uses and appreciate it. Cryptocurrencies emerged after the global crisis of 2008 when financial middlemen like banks lost their credibility. However, they now provide satisfactory services in clearing payments and fraud prevention. This has tipped the global scale against the use of blockchain tech in financial sectors. But this can change if certain global events occur, however the stability of the current financial institutions does not indicate any such crisis in the next few years. Network and transaction fees are also considered an underlying issue of blockchain technology. Bitcoin charges 20 cents per transaction while the charges for an end-user in a financial institution such as a bank are very limited. Will society opt to rebuild its entire financial structure from the ground up using a technology it doesn’t completely understand when a robust time-tested financial structure already exists?
Blockchain – Into the Future
Accounting, transactions, contracts, and records play a pivotal and defining role in our societal system. They protect assets, and organizational boundaries and uphold the promises between institutions, governments, and corporations. Despite their importance, these have failed to digitize in ways other sectors have. Blockchain technology offers a solution to this. But the touted revolutionary technology is much more than just this and we are yet to realize its limitless potential.