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Limitations of Blockchain Technology

In this tutorial, we are going to learn about the various limitations of blockchain technology.
Submitted by Vaishnavi Srivastava, on January 23, 2022

There are many possibilities, but not infinite, for the blockchain technology that underlies Bitcoin, Ethereum, and other well-known cryptocurrencies. Blockchain has the potential to revolutionize the world, from improving election security to changing payment methods for products and services, but it's just as important to recognize its limitations.

While it's easy to get caught up in the topics surrounding Bitcoin and other cryptocurrencies, the blockchain concept has significant hurdles and limitations that need to be understood. While blockchain technology has had a significant impact on many businesses, its application to a wide range of industries and digital interactions is inappropriate and even harmful. These limitations are not always obvious, and many have been discovered in difficult ways by trial and error.

Listed below are the five main drawbacks of blockchain technology:

1) Complexity

Blockchain technology requires the use of a brand new lexicon. It made cryptos more accessible to the general public, but highly specialized professions are not for inexperienced people. Fortunately, blockchain and cryptocurrency courses and indexes are beginners. Developed for, but this is a complex sector that takes time to absorb.

2) Network and size

Blockchain technology requires the use of a brand new lexicon. It made cryptos more accessible to the general public, but highly specialized professions are not for inexperienced people ... Fortunately, blockchain and cryptocurrency courses and indexes are beginners. Developed for, but this is a complex sector that takes time to absorb.

3) Cost and Speed

Bitcoin is a good example now. Early in its existence, it was pointed out that transactions were "substantially free."

Now, as the network grows, it is clear that using Bitcoin at this rate is not the most cost-effective way to transfer funds, as the transaction costs of the network will increase.

4) Inevitable security disruption

A notable vulnerability in Bitcoin and other blockchains is that if more than half of the computers acting as network nodes lie, the lie will be true. This is known as the "51% attack" and was mentioned by Satoshi Nakamoto when he first launched Bitcoin. As a result, the community actively monitors the Bitcoin mining pool to ensure that no one unknowingly controls the network.

5) Politics

Many of the mechanisms that our banks and governments have built over the years are confused by blockchain protocols. Due to the growing popularity of blockchain, some governments encourage or shut down new technologies. They are forced to take action to choke their territory. However, over time it will become clear whether technology is good or bad for different communities. Keep in mind that their opinions are important and will have a significant impact on the development of blockchain-based applications.


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