Limitations of Blockchain technology Now in this beginners Bl | 𝘾𝙔𝘽𝙀𝙍 𝙏𝘼𝙇𝙆 ™ 😷 𝗛𝗮𝗰𝗸𝗶𝗻𝗴 𝗧𝗼𝗼𝗹𝘀 . 𝙇𝙚𝙖𝙠𝙨 & 𝙈𝙤𝙧𝙚

Limitations of Blockchain technology

Now in this beginners Blockchain tutorial, we will learn about limitations of Blockchain technology:

Higher costs: Nodes seek higher rewards for completing Transactions in a business that work on the principle of Supply and Demand

Slower transactions: Nodes prioritize transactions with higher rewards, backlogs of transactions build-up

Smaller ledger: It is not possible to a full copy of the Blockchain, potentially which can affect immutability, consensus, etc.

Transaction costs, network speed: The transactions cost of Bitcoin is quite high after being touted as ‘nearly free’ for the first few years.

Risk of error: There is always a risk of error, as long as the human factor is involved. In case a blockchain serves as a database, all the incoming data has to be of high quality. However, human involvement can quickly resolve the error.

Wasteful: Every node that runs the blockchain has to maintain consensus across the blockchain. This offers very low downtime and makes data stored on the blockchain forever unchangeable. However, all this is wasteful because each node repeats a task to reach a consensus.