What Are the Major Limitations Related to Blockchain?

Companies, institutions, and investors are now showing interest in the decade-old Blockchain technology. However, prominently seen as revolutionary networking technology, it now has certain major limitations.

Although many users leverage the benefits of Blockchain technology, it is important to address the challenges.

In addition to the costs, streamlined operations, speed, and ever-increasing efficiency, Blockchain becomes quite intensive in its processing and networking capabilities. Here are just a few bottlenecks of the popular Blockchain cryptocurrency explorer service and wallet.

Major Limitations of Blockchain Technology

Blockchain Comprises Highly Intricate Network Processing

Blockchain is a complex network of transaction processing. It initially comprised only a few nodes for transaction processing. There was confusion among the numerous banks and institutions adopting Blockchain technology.

 Despite the level of applications (small), many institutions/banks hire Blockchain experts who increase the cost of managing this highly intricate networking technology. In addition, no matter how easy it appears, Blockchain applications are not easy to duplicate for different industrial uses.

Blockchain Has Scalability Issues

Changing the size and scale of Blockchain technology is a massive hurdle due to its centralized networking structure. It is not common in all but some of the major applications of Blockchain.  The main point of concern regarding the scalability issues is the time it takes for every transaction to validate before entry.

As in the form of a centralized architecture, there is little communication between peers. Hence, higher transaction validation and entry speed. On the other hand, in Blockchain architecture, validation requires more than a couple of minutes as each node communicates to lay authorization on the transaction.

Blockchain Contains Immutable Data

The data on the Blockchain node is immutable, which makes it a high-security risk. While financial systems and supply chains are just a few examples that benefit from it, the immutability of data is only operational when the nodes are fairly distributed over the network.

Moreover, Blockchain is controllable once you gain more than 50 percent of the total nodes in the network. Hence, data immutability (privacy risk) and chances for a 51% attack make Blockchain a cause for security concern.

Blockchain Consumes Excessive Energy

Blockchain operates on the mathematical solutions of the complex and hard-working miners. With every transaction, there is a highly complex mathematical problem that arises.  Since the solution takes long hours and high energy, it is not an energy-efficient network.

Conclusion

It might be difficult to ignore the setbacks and disadvantages of the popular Blockchain technology. However, if the enterprises and institutions want to benefit, they have to find a solution.

More importantly, the decentralization or centralization of Blockchain is still a matter to resolve.