One of the most crucial innovations hitting the world today is blockchain. No doubt, blockchain is making a profound impact on digital marketing industry. The global blockchain marketplace is already booming but it is expected to grow to an incredible $7.7billion by 2022. Presently, many marketers and industries are using blockchain to grow their business and it has become a wonderful part of marketing strategy. A lot of marketers have taken advantage of blockchain in their marketing, but… do you think blockchain only has pros and not cons? If you’re using blockchain you would surely be aware of the pros of it, right. But you’re here to know about the cons of blockchain technology.
Before I enlist the cons of blockchain below, first I will give you a very basic definition of blockchain technology to ensure that everyone knows the proper concept of it.
Let’s now dive in below.
What is blockchain technology?
In simple words, blockchain is a distributed ledger technology that built on the common database providing transparency and security. A blockchain contains secured historical records of data. It also enhances the security and transparency of the common database. For instance, a genuine blockchain is public that means anyone from anywhere can view the content. A public nature of blockchain technology is considered as distributed or open ledger. Moreover, any business can use blockchain technology to facilitate, authorize, and record the exchange of value like service, product, money, or information.
Now it’s time to read about the cons of blockchain technology.
Cons you can face while using blockchain in digital marketing
Don’t forget when you use blockchain technology, you encounter many cons in your marketing strategy. Below given are some of the cons which you need to pay attention to:
– Data in blockchain is immutable
The first con of using blockchain is that the data you in is won’t mobile. Well, multiple systems can benefit from it including supply chain, financial systems, and so on. But it is clear that blockchain network can easily controlled by an entity if a business owns 50% or more of the nodes, which makes it vulnerable. Another problem here is that once you write data, you can’t remove it. So you just can’t remove the traces of your data.
– Blockchain is inefficient sometimes
You must know that there are various types of technologies available in blockchain, right. And if you pick up the most popular one i.e. bitcoin, you will find a lot of inefficiencies within the system. You will encounter storage problem for multiple nodes if you want to become a part of the network. Additionally, the size of the blockchain continues to grow and then the whole network gets slowed down. So this is not at all good for commercial blockchain where it is essential for the network to be fast and secure at the same time. Well, the inefficiencies are improving with the help of blockchain solutions. So you can follow the solutions if you find any problem occurring in it.
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– Not fully secure
You would definitely know that blockchain technology is more secure than any other platform. But it doesn’t mean that it is completely secure platform. In fact, there are many ways for which you have to compromise something here. For instance, double spending, cryptograhic cracking, 51% attack, and DDoS’s attack are some of the issues which make blockchain technology insecure and inefficient. So if you’re using blockchain technology, you will encounter all these problems which you have to manage anyhow.
– Blockchain solutions consume too much energy
As you know that blockchain technology introduced with Bitcoin and the high energy consumption is what makes these complex mathematical problems not so ideal for the real-world. So every time you update the ledger with a new transaction, the miner needs to solve the problems that mean spending a lot of energy. Though not all bockchain works in the same manner, there are other consensus algorithms that have solved the problems. But problem with Bitcoin still need to be solved.
– Cost is high
Another disadvantage of using blockchain is high cost which goes in implementation. In fact most of blockchain technology includes hyperledger, which requires a lot of investment from the organisation. Well, there are costs associated with hiring developers, managing teams at different aspects of blockchain technology, licence costs if you opt for paid blockchain technology. Well, you also need to take care of the maintenance cost associated with the solution. For many businesses, the cost may go up to millions also.
The bottom line
So here comes to the end of the cons of using blockchain in digital marketing. No doubt blockhain has both pros and cons which I have already discussed above. If you’re moving forward to apply blockchain technology in your marketing strategy then you have to be careful of its cons also. You just can’t ignore it as you need to follow the solutions to resolve the problem. You can also check our work for further query.
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