Top Advantages and Disadvantages of Blockchain Technology

Top Ten Disadvantages of Blockchain Technology and Opportunities For Blockchain Development Companies

#1 — Performance issues

Performance is not seamless with blockchain and has certain limitations. For instance, it can only process seven transactions per second, it consumes too much energy, and it’s not a huge distributed system. With all these performance issues it’s not possible to have blockchain as a scalable solution.

#2 — Not an environmentally friendly option

One of the most extensive implementations of blockchain technology is cryptocurrency and mining of cryptocurrency is too much energy exhaustive. This could be a threat to the environment and is not considered a long-term solution.

#3 — Multiple security layers

Blockchain demands the implementation of multiple security layers that are too complex, resource-intensive, and tedious.

#4 — Not 100% secured

It’s true that blockchain technology is secure more than its relevant technologies. But, it’s not 100% secured. The technology is prone to DDoS attacks, crypto-jacking, and double-spending. Dangers are around you in its case as well.

#5 — Limitations with implementations

As cryptocurrency can only work with updated and modern-era systems, organizations using the legacy systems won’t be able to make most of it. Hence, its implementation is limited.

#6 — Anonymity is a myth

#7 — Talent and Maturity

This technology is still new and will take some time to be matured. There are few professionals in the market who have mastered this technology and their service comes with a high cost. So, if you want to use this technology, get ready to deal with talent crunch and high talent management costs.

#8 — Too much cost-demanding

Getting started with cryptocurrency is too much costly as one has to hire specific developers, have to build the required infrastructure, and spend greatly on security measures. The huge initial investment makes it an option only for selective businesses.

#9 — Privacy is a serious concern

As well all know, blockchain technology is very transparent and this transparency kills privacy. Everything happening in blockchain remains in the hands of network nodes. Hence, those who are present in the network have access to that data. There is no privacy at all.

#10 — Cost of implementation and Maintenances

The cost burden, imposed by blockchain technology doesn’t end with resource procurement. It goes on with the implementation and maintenance. Even if solutions like Hyperledger are open-source, a huge in-direct investment is demanded by this technology.

Ending Notes

Blockchain technology is the future and is going to reap multiple benefits if one learns the art and science to deal with existing potential issues and improve its performance.



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