Blockchain Technology Limitations

April 19, 2022

In this Bitcoin Era, everything that is connected or related to the Cryptocurrencies starts with Blockchain is managed by it, and ends on its terms. The dispersed network system with the ultimate power of creating various and unique applications has the capability of culminating all to an ecosystem of founders, investors, and sellers. The best feature of it is that it can establish peer-to-peer connections, which leads to a safer environment and can save time and money. Now, the crypto-world is completely based on the Blockchain system, and any fault present in the Blockchain means that it can bug the Crypto space as well. The Blockchain, however efficient and updated to the present day, still has certain limitations, and with time and effort, these can be mitigated but not likely to be completely omitted.


The system itself does not provide the expected scalability, which is needed for an extravagant network system. If we look at the dynamics, we can see that transactions taking place both in Bitcoin and Ethereum, the two most successful ones in this area, are often dependent on network congestion. Resolving this issue is quite impossible, as Blockchain is a decentralized system with various network nodes present in it. The nodes work with the data, which is provided by the users, and their existence is completely based on it. The more people join these nodes, and the more nodes are added to a Blockchain system, the chances of the system slowing down are higher. The only solution to avoid these issues is to increase the number of nodes.


Anonymity present in a blockchain network indeed helps it to gain more investors. The privacy of information makes one feel more secure in this environment, and the peer-to-peer connection confirms that the exchange only takes place in the presence of the participating bodies. But what all forget to ponder upon is that anonymity can be a golden ticket for someone who wishes to promote corrupted data. Mostly, it can be picked on by experienced investors, but many fresh investors can face real trouble in this regard.

Energy Consumption

As much as it offers us speed and mostly a secure environment for the users, the energy consumption can be high for certain blockchain systems. Mostly it can be observed in a proof-of-work consensus algorithm, which is present in Bitcoin, and Ethereum 2.0 is advancing towards this algorithm. The profuse power it consumes for the validation of the transactions is a lot more than one can expect. A one-week sum is approximately 1,173 kilowatt per hour, which matches the calculation of a decent American home’s usage rate for six weeks.


The Blockchain and the participation of individuals in it are very vast. We all are well associated with the 51% attack and the consequences of it. The fact that lies here are that if only you possess a private network, you can save yourself from the calamity of this attack. This also means that you cannot always rely on the investment to gain the expected profits if you are in a public node, as the one who controls the node to the 51% or more is likely to control everything present in it, and that means, it can go completely haywire. Also, DDoS attacks are very frequent in a Blockchain network as it is full of similar requests, and network congestion is always there too.

Shortage of Expertise in Technical Services

As much of the technology has been developed, the number of individuals to help advance, control, and monitor it from the ground level is less in number. The problem takes a bigger shape when a developing nation in the circle faces the issue of most of its potential technical backups leaving the country and joining the forces of others as those countries offer potential to them. Similar events can be found in India, and the biggest matter is the nation offers a great future to this industry.


As much as we know, transactions are mostly immutable in a Blockchain, and it leads to many issues. It is mostly referred to as an advantage, but if any transaction is frozen or the payment needs to go back for certain alterations- it is quite a big issue.

One cannot argue against the statement that Blockchain technology has many setbacks, and these can be detrimental to the systems as well as the users. But it is also to consider that Blockchain offers a seamless and exciting future, and if we are careful enough, it is still quite manageable.


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