The Internet is a vast network of computers connecting around the world. Using the internet we can share information and communicate with anybody from any corner of the world in seconds. The Internet has brought a revolutionary change in the communication infrastructure. Similarly, blockchain is a digital ledger and also a protocol for connectivity. Data is stored in blocks that are chained together to form the blockchain. Once a block gets filled with data it gets added to the chain that has previously collected data.
The comparison between blockchain and the internet has emerged in recent times. Is blockchain worth all the hype? Is it as big of a deal as the internet? Here, in this article, you will learn about the tug of war between the internet and the blockchain in terms of popularity.
Comparison between the internet and blockchain
The Internet is mostly about the exchange of information whereas blockchain is all about value exchange. The exchange of information on the internet is available to those people among which it is shared.
Similarly, the exchange of values via blockchain also occurs between some parties but is made available for observation by everybody on the network. Both the blockchain and the internet are protocols for connectivity, but the connectivity type differs. There is a significant difference between the manifestation of blockchain and the internet.
The Internet was developed as a project linked with academics. The blockchain evolution took place due to the emergence of bitcoin core and later moved into the realms of academia and enterprise. There is a huge gap between the era when the internet had originated and the era when blockchain came into existence. The differences can be traced back to the fact that the internet is way older than the blockchain.
Advantages of blockchain
- Transparency – Blockchain allows multiple participants to view everything on a digital ledger. The transactions can be tracked in a blockchain making it a transparent system.
- Greater efficacy – Execution of transactions between participants is well synchronized.
- Enhanced security – The transaction histories are immutable keeping the business processes well protected.
Loopholes in the blockchain technology
- Lack of regulation – It is a decentralized system that often hinders people from trusting its authenticity.
- Environmental cost – Blockchain technology runs on computing complex algorithms that require powerful computers. This puts a negative impact on the environment.
- Complexity – The blockchain is quite complex to understand and a user needs to read a lot about encryption and distributed ledger behind blockchain. This factor often makes it less desirable among people.
- Slow and cumbersome – Blockchain transactions can take time due to their encrypted nature as compared to traditional methods which are why people often opt for the other alternative.
Can blockchain work without the internet?
The blockchain system is user-centric unlike the internet system making it more secure and least susceptible to information leaks. It is possible to set up a blockchain without the internet, where you can create a private blockchain network to set up your nodes and participants and achieve a consensus mechanism to validate your transactions. Blockchain has the potential to bring to life a much better mode of networking that would not require the involvement of any intermediaries.
People involved in blockchain technology, be it a trader or investor or an enthusiast, are posing it as a future internet. However, blockchain cannot work alone, and it will work with the internet. There are certain loopholes in blockchain technology that should be mended for it to overcome the internet. Blockchain has successfully created new business models and gained popularity. It has become an improvised version of the internet and has laid the foundation for the new age internet.