Disadvantage of blockchain technology

The proponents of blockchain are excited about its application. It remove the need for a trusted third party and allows all the participants to monitor the transactions and be assured that they are reliable.

This platform uses the concept of duplicating the database in many servers (called nodes) and comparing the results. If any of the database is hacked, the other database will be able to overrule that database using a voting and consensus system.

I find this method to be inefficient and costly. I also have my doubts about the need to ensure integrity of the database in this convoluted method.

I am not enthusiastic about the use of blockchain and the independence from a trusted third party.

However, I am aware that I belong to the minority. Many people are enthusiastic about this new technology. They see it being a “big opportunity” and are investing a lot of time to learn it.

For a certain period, many of the enthusiasts have used the platform to introduce new coin offerings to compete with bitcoin. Most of these efforts have been abandoned after a lot of time, money and energy have been spent on it.

Even the government agencies are excited about it. They invest a lot of money to promote the platform. They look at the potential to use the platform for the operation of “smart contracts”.

I am skeptical. I like to share my views.

a) I can understand the value of transparency, and the need to protect the integrity of the data and ensure that they are not altered fraudulently. However, I do not accept that the blockchain is the best way to achieve this goal.

b) I can see the risk that a third party that is appointed to manage the database could abuse its authority and take advantage of its access to the database. I prefer to deal with this problem using a separate approach, rather than to implement the blockchain technology.

I discussed this issue with a blockchain practitioner. He agreed with me. He said that the blockchain algorithm has changed to address my concerns. They are now talking about blockchain 2.0.

I consider this to be just another excuse to keep blockchain alive, and protect the investments that have been made in this concept.

I do have an alternative approach to achieve the above goals, rather than rely on blockchain technology, which I consider to be inherently inefficient and convoluted. I will talk about my alternative approach in a separate post.

For this post, I like to point out that the blockchain technology is perhaps a hype and a waste of time.

 

Tan Kin Lian

 

 

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14 Responses to “Disadvantage of blockchain technology”

  • Darth Vader:

    So tkl, WHAT makes you qualified to make these assessments? Are you an IT expert? Do you have actual experience in cybersecurity, database management, logistics management, parallel processing or any of the uses or application or blockchain? If no, then WHAT makes you think you’re qualified to comment or pass judgment on any of this?

    So you like to share your opinions. Looks more like you want to ram them down our throats. Just look at all the odious stupidity you’ve crapping all over here: advocating communism as a political alternative, wanting only ruling party members to have the right to vote, demanding price controls, all stupid ideas that if implemented always have only one inevitabpe outcome, dictatorship and the eventual destruction of the country that carries them out. And you ACTUALLY WANT all these stupid ideas here!!!!

    Oh, and WHAT do you ACTUALLY KNOW about engineering, whether IT or otherwise anyway????!!!! Didn’t you say it would cost only 5 to 10 million dollars over 20 years to protect against floods caused by rising sea levels?! ABSOLUTE BULLSHIT! Try 10 million dollars a WEEK over 10 years maybe. At 10 million dollars a week, this will add up to 520 million a year, or 5.2 billion over 10 years; considering [email protected] ALREADY costs 1.7 billion dollars, 5.2 billion dollars to build a giant sea wall around the entire island is a bargain

    Know something tkl? Whatever you may think you are, you definitely are NOT the expert in everything like you like to brag here. In fact, the ONLY thing you have proven yourself to be an expert in is in posting garbage that makes no sense and demanding that you be given a high level government post so that you can implement all your stupid ideas! The best thing for you to do is to just shove your head back up your own rectal orifice and relieve yourself once your cranium is securely within!!!!

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  • half past 6 tan kin lian:

    a fool is confirmed when the fool opens its foolish mouth.

    it is lucky citizens did not give you the votes, well below threshold, because everyone knew then, and confirmed by now, it was a fool who was seeking their votes.

    don’t write or speak on something you don’t know and pass off as if you know.

    dwell on something which you really know, such as waking up from bed, eating your breakfast. on more serious things such as brushing your teeh, driving your car, or bitcoin, or blockchain, stop. because you show your foolishness through them.

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  • Harder Truths:

    Wow – TKL is also a electronic wizard who is a master of blockchain technology as well as his other talents (too numerous to mention).

    Please tell us more about your alternative technology TKL. Everyone knows we come to TRE to listen to your preachings.

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  • Rabble-rouser:

    S’pore’s Cost Of Living Eco-system already so high, where got time for Blockchain Technology? Please, don’t waste byte space talking about esoteric issues when bread-&-butter ones are on the table.
    Lucky, “Gold Chain” Tan didn’t become President in the Battle of the Tans election. It speaks for itself eversince!

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  • No medicine can cure:

    If you remember;

    On Aug. 15 2010, Bitcoin’s Biggest Hack In History: 184.4 Billion Bitcoin from Thin Air

    https://hackernoon.com/bitcoins-biggest-hack-in-history-184-4-ded46310d4ef

    After reading the above, if your mind is still so slow to understand then let me explain it to you;

    In just 3 hours, he can quickly hard forked the blockchain to remove the 184.467 billion Bitcoins. Which means, he recreated the old chain into a new corrected blockchain. So there is the old chain and the new corrected blockchain floating around [read the last few paragraphs].

    If you still cannot understand…. my God!

    Which means there is literally a “God” of the chain. He can recreate it in a jiffy, then he can do anything from it. YOU! get what I want to tell you!. Ever ask yourself where does those bitcoins reward money came from?

    That means your security also relies on the creator of the chain.

    Can the private creator be the “money-printer”? generating from thin air, reward bitcoins to chunk the “Engine” to start? If the chain kicks off, he could be the private megger rich.

    “Blockchain as a conceptual technology is safe. That’s what MIT says. But blockchain on paper serves little purpose.”

    The problems as they happened, are always blamed on the implementation from the concept.

    So, You want to put your “money” on it?

    If you are so dump, then no medicine can help you.

    I don’t always agree with TKL, still waiting for his public apology in HLP for one of his article, but he got this one right for the public.

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  • TruBlu:

    Block n Chain becomes block chain?

    Mentally blocked?
    I guess so.

    Happy *smoking*,Mr Tan…

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  • RDB:

    Looks like there are so many Block Chain software experts here leh. All giving their opinion or should we say “opinenions” instead. Even if one is qualified software engineer, it does not mean he is an expert on Block Chain right! It is called software and not hardware. WHY? Clue: soft can contort right or not?

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  • Nebert Tumwebaze:

    Please, this guy who posted this is my piece of advice for you; briefly I would advise you to invest in the newest crypto currency called DAGCOIN if you don’t like Blockchain currencies just like me. DAGCOIN doesn’t use block chain, it instead has the most developed technology with a Dagchain system! Remember one thing that DAGCOIN is the better version of Bitcoin.
    Good luck.

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  • Dumb Tan KL:

    South Korea treated Block Chain as one of the main research pillar.
    China already issues its cytocurrency.
    If you are in charge, u be liked PAP.!!

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  • Jman:

    I agree with TKL.

    Too many people put too much stock in the assumptions underlying the existing blockchain technology, and hand over too much trust to the blockchain eco system.

    In the same way, people give too much credit to AI. It is true AI will change many aspects of life for everyone. But AI is little more than pattern analysis, and decision making that follows from that. For a start, AI simply extends the status quo. And if you input anything new, merely builds further based on the same logic. There isn’t anything Creative about AI at all. In the first place, Scientists don’t fully understand how the human brain works. If they cannot fully understand it, then how can we expect Engineers to code something that is not fully understood into algorithms?

    The way many people respond to AI is acceptance of AI as gospel truth, without questioning if it is all that it is made out to be. Unfortunately, this is the way most people are.

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  • Dumbest of the Dumbest:

    Clearly for someone who can’t even differentiate technology with software..so..so..so…soft..ware.. then what do you expect from him?

    Dumbest than TKL? hahahahah LOL

    RDB:
    Looks like there are so many Block Chain software experts here leh. All giving their opinion or should we say “opinenions” instead. Even if one is qualified software engineer, it does not mean he is an expert on Block Chain right! It is called software and not hardware. WHY? Clue: soft can contort right or not?

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  • Bapak:

    He is probably counting a lot of money in one high tower like them.

    Dumb Tan KL:
    South Korea treated Block Chain as one of the main research pillar.
    China already issues its cytocurrency.
    If you are in charge, u be liked PAP.!!

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  • No medicine can cure2:

    TKL is slightly confused. Let me explain so that TKL can ask his “expert” even more.

    Blockchain Technology & Bitcoin should not be misunderstood to be the same. It should not be confused and assume that while Bitcoin harness the data integrity ["the NAME"] of the technology and implemented it, that Bitcoin is therefore inherently safe and secure. The data integrity may be secured but the implementation and the business ends of it, may not.

    This technology had been implemented in renowned private institutions like bank, for data integrity and security. In reality it is nothing more that a [linked list] using hash numbers instead of pointers as most programmer would know.

    As in “Coins”, this BlockChain data security concept, I would say forms only 1.0 % of the whole software implementation. Therefore 99% of it are private implementation with private backdoors and functions, in most likeness.

    Personally I feel that this “coins” data structure is rather dead. Once it is casted to the public, it is fixed and cannot be evolved anymore [the structure, as what its security is advertised and promised to be, of-course, except in the above case where the "God" recreate another chain, apparently in the dilemma and the brink of its own existence. To me, it appears to be a "fox-tail" exposed].

    *Unlike money, there is no international central bank for “worth” valuation, so I wonder anyone had cash-out his coins before? TRE had implemented coinhive mining before? Wonder how they cash-out their reward coins? from DBS Bank or central banks? The exchange rate in the internet is very very good!… hehehehehehe LOL or toy money?

    *Careful of those fake publications and news flooding in the internet including exchange.

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  • No medicine can cure3:

    On 22 September 2013, the Monetary Authority of Singapore (MAS) warned users of the risks associated with using bitcoin stating “If bitcoin ceases to operate, there may not be an identifiable party responsible for refunding their monies or for them to seek recourse”[85] and in December 2013 stated “Whether or not businesses accept Bitcoins in exchange for their goods and services is a commercial decision in which MAS does not intervene”[86] In January 2014, the Inland Revenue Authority of Singapore issued a series of tax guidelines according to which bitcoin transactions may be treated as a barter exchange if it is used as a payment method for real goods and services. Businesses that deal with bitcoin currency exchanges will be taxed based on their bitcoin sales.

    For those interested, can download the MAS guide;

    https://www.mas.gov.sg/-/media/MAS/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Guide-to-Digital-Tokens-Offering-last-updated-on-5-April-2019.pdf

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