Limitations of Blockchain Technology
What is Blockchain Technology ?
Blockchain is a database-type which stores data in blocks. Every block of information in the blockchain is connected. If new data comes, it is stored in a new block, and as the block gets filled with data, the new data gets attached to the previous block. The blockchain database system is decentralized so that anyone can access it. For the bitcoin system, blockchain is the right choice where each transaction gets recorded and visible to everyone.
Advantages of Blockchain
- Secure platform for transaction
- No third party interference
- Faster processing due to connected databases.
Limitations of Blockchain Technology
- Blockchain is not a distributed computer system : Databases depend on each node to function correctly. Distributed systems also work the same as blockchain, but there is a lack of mutual assistance and synergy.
- Scalability problem : Blockchain is a decentralized system. If we use bitcoins, then we know that the transaction depends on the network congestion; this problem is because of the scalability of blockchain.
- Sometimes blockchain uses too much energy : Some blockchain solutions may use too much power. When we update a new transaction, we need to solve some minor issues that take too much time.
- Blockchain is irreversible : Data immutability is the most significant disadvantage of a blockchain system where once you put some data, it doesn’t get removed.
