Table I.

Characteristics of blockchain

Characteristics of blockchainAdvantagesDisadvantages
P2PP2P transaction is possible without trusted 3rd service provider
Unnecessary fee is reduced
When problem occurs, it is uncertain who is responsible for it
ScalabilityEasily established, connected and expanded by disclosed source
Cost of system development is reduced
The possible number of transactions that payment can be handled is very slight compared to the transaction scale within real economy
TransparencyIt is possible to publicly access all transaction records.
Legalization of transactions and reduction of regulation costs
Since transaction details are disclosed, all transactions could be tracked, in principle
Perfect guarantee of pseudo-anonymity may be difficult, and reidentification by combining is possible
SecurityThe ledger is jointly owned
(integrity)
Cost related to security is reduced
When private key is hacked or lost, there is no general solution
It does not provide confidentiality
System
stability
There is no single failure point.
If errors or decline in function occurs in certain participating systems, the effect on the whole network is very slight.
Excavation focuses on large mining pools.
It is difficult to execute real-time, large volume handling
Source: Financial Services Commission (2016) 

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