Some Limitations of the Blockchain Technology
Suffice it to say, blockchain is barely a data structure. From a computer science of view, the manner the data is distributed is clever, however, the data itself is fairly simple. It’s just a unique type of distributed write-only database.
It can be pretty slow to process data in a blockchain. Using bitcoin for instance. Each second, Visa can process 24,000 transactions. Bitcoin can now make 7 transactions in a second. Also, the average appears to be about 10 minutes, which is bad. The highest bitcoin has attained in the last 1 year is 23 transactions per second.
A faster cryptocurrency, Ripple can regulate 1500 transactions per second. This is still slower than Visa. There are no great numbers of people buying and selling things using blockchain-based cryptocurrency, partly for this reason.
The primary thing blockchain performs well is the decentralized feature. It has no central point and that’s valuable to many applications however Bitcoin has limitations, also.
A simple example is to make a comparison between cryptocurrency and a bank in the situation of a defrauding transaction. Any time a stranger attempts to withdraw money from a person's bank account, a central authority is monitoring this action and could reverse the transaction. Banks can reverse transactions, and that’s essential to how we make sure money isn’t stolen. Also, if it is stolen, banks assist in getting the stolen money back.
Truth be told, you do not get to enjoy this privilege on a blockchain-based solution. This is because the entire point of blockchain is that if something is carried out, then nobody can alter it. In the absence of a central authority, who can determine whether the transaction was defrauding and process a reversal?
In this way, many high-profile stealings from bitcoin wallets have occurred. A cryptocurrency wallet is made up of a long series of numbers. When a person gains access to these series of numbers, they can make use of your money.
Many bitcoin wallets have undergone high-profile stealing. However, bitcoin is a perfect attraction for hackers. This is because bitcoin does not have a means of detecting that a thief is using your bitcoin wallet once a person has your bitcoin wallet.
Though Bitcoin has a lesser vulnerability to technical hackers making attempts to thwart the basics of the system, but, it is likely to be more susceptible to human problems because there’s no solution if a user makes an error.
Blockchain technology is just ten years old. This implies that time is important for it to mature as it is new. You will observe many users attempting to find a solution to the problem of decentralization when you take note of the different consortiums.
Blockchain has to solve the issue of immaturity. It is not maturing in a long time. There remains a lot to go to experience modifications in standardizing blockchain. Many different solutions plan to solve the major problems, however, are failing at working together to standardize blockchain technology.