Is Blockchain Siphoning off Resources of the World?

Blockchain is an open source innovation and shows potential for diverse applications

Blockchain is an open source innovation and shows potential for a variety of applications. That is the reason why the Linux Foundation started the Hyperledger project supported by big tech companies such as IBM. But blockchain is yet to deliver a real application for the common mass.

Blockchain received tremendous attention in the arena of technology driven business

Nine years trifled away since the first and the seminal paper on Bitcoin was published under a pseudo name. The word "Blockchain" received tremendous attention in the arena of technology driven business. The price tag of Bitcoin rose very high in 2017 and is crashing down faster than expected in 2018.

Almost every tech company, big or small, put some steps towards embracing blockchain

Almost every tech company, big or small, put some steps towards embracing blockchain. Amazon obtained many domain names associated with blockchain or digital coin. Kodak started their own digital coin which helped boosting their share price. The Reserve Bank of India, the top government body of financial matters in India, also believed to have implemented an experiment on blockchain.

Even a small tutorial college is after blockchain and is investing huge funds

A small tutorial college in our locality whose sole business is imparting training to students for job oriented competitive examinations, has partnered with a blockchain startup for delivering certificates to their students anonymously. This is not a necessity to improve their service but it is a "smart" move. On the way they waste a huge amount of funds, which they could have utilized to improve the teaching facilities.

The global electrical energy consumption by digital coin transactions everyday is very high

The blockchain based coin transactions burn a huge amount of the useful electrical power of the world. The electrical power consumed for each Bitcoin transaction can power an US home for an entire week. The global electrical energy consumption by digital coin transactions everyday is huge.

The Bitcoin Energy Consumption Index tracker puts Bitcoin’s 2017 estimated annual energy use at almost 32 terawatt-hours, approximately equivalent to Serbia’s yearly electricity consumption and more than at least 159 other countries, including Ireland and most countries in Africa.

Recently researchers found that privacy is not protected in the Bitcoin wallets

We read news of stealing of digital coins from the digital wallets or the so-called Bitcoin wallets. Recently researchers found that privacy is not protected in the Bitcoin wallets. They show how easy it is to access Bitcoin funds and divert them into a different account.

A digital currency theft is reported Japan losing about $534m worth cryptocurencies

The breaking news exposes the vulnerability of Bitcoin and blockchain. One of Japan’s largest digital currency exchange Coincheck has admitted that it has lost some $534m (£380m) worth of virtual assets in a hacking attack on its network.

Is blockchain hackers' paradise?

Since blockchain is completely decentralized and there is no central authority, so there is no way to track who has done which digital transactions. What interpretation one can make? Can we think that blockchain is a hackers' paradise? We won't be completely wrong.

Is blockchain siphoning off the world resources?

But the research studies will continue to improve the technology and fix the loop holes. On the way, a few people will be phenomenally richer and many people will be losing their investments. The world would be deprived of a vast amount of energy which would be siphoned off for solving the algorithmic problem of blockchain.

Here are some other posts I authored:

• Biometric Security, iPhone X and the Privacy Concern
  
• Why are Data so Vulnerable?
  
• Glasses-Free 3D Displays Empower Smartphones, TVs, Tablets and Digital Signage
• Memory-Driven Computing is the Next Big Thing
• Why GNU/Linux is not Accepted by the Academic Community?
• Unix-like Operating Systems are Safer to Malware and Virus Attacks
• Why Google and Microsoft Run after Glass and Lens?
• Best Solution to Software Virus
• Need 15 Tips to Eat a Biscuit?

In June 2015, Dr. Jeffrey Strickland and I founded a new LinkedIn Group called "The Unfluencers". To learn about the history of "The Unfluencers" please read the seminal LinkedIn article by Dr. Jeffrey Strickland entitled -- "Who are the Unfluencers". This group is an open group. You are welcome to join this group and engage yourself in the discussions. The Unfluencerᵀᴹ Logo is a registered trademark of Dr. Jeffrey Strickland.

Text Copyright 2018 Debesh Choudhury — All Rights Reserved 

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Debesh Choudhury is an academician and researcher. He is interested in the science and engineering of optics and electronics. He uses GNU/Linux, Free and Open Source Software for all his works related to computers, be it educational or entertainment, professional or personal.