Blockchain is a distributed ledger system that improves on centralized-based solutions in a variety of ways. It is made up of peers connected in a distributed network, with each peer having a copy of the ledger. The network employs a consensus technique to validate transactions between those peers. Let’s take three people. While each individual is capable of operating independently, they require centralised authority when conducting transactions amongst them. For example, if one attempts to transmit money to another, it must go via a centralised bank or payment gateway. Although blockchain technology will transform the world around us, to comprehend what it has to offer, we must first comprehend its drawbacks. Thus, without further ado, we take a look at the downsides of blockchain technology that we would wish to know.
Disadvantages of Blockchain Technology
- Not a Distributed Computing System
To function correctly, a blockchain is a network that needs nodes. The quality of the blockchain is determined by the quality of the nodes. For example, Bitcoin’s blockchain is robust and incentivizes nodes to join the network. The same cannot be said for a blockchain network that does not reward nodes. This implies it is not a distributed computing system in which the network is not dependent on the involvement and participation of the nodes. A distributed computing system, on the other hand, works to guarantee that transactions are verified according to the rules, that they are recorded, and that they have the transactional history for each transaction.
- Problematic in Scalability
Blockchains are not as scalable as their centralised counterparts. If you’ve ever used the Bitcoin network, you’ll know that transactions are processed based on network congestion. This issue is connected to blockchain network scalability concerns. Simply said, the more users or nodes join the network, the greater the likelihood of slowing down! However, there has been a significant shift in how blockchain technology operates. Scalability solutions are also being introduced into the Bitcoin network as the technology evolves. The answer is to conduct transactions outside of blockchain and solely utilise the blockchain to store and retrieve data.
- Lack of Efficient to some point
There are several blockchain technologies available right now. Picking the most popular ones, such as the blockchain technology utilised by Bitcoin, reveals a plethora of inefficiencies inside the system as this is one of the major drawbacks of blockchain. First and foremost, when I attempted to install the bitcoin miner on my machine, I immediately discovered that the ledger may easily exceed 100 GBs. There must be a better method to manage this, as nodes must copy the data anytime it is altered. Furthermore, the blockchain’s size grows as more transactions and nodes are added to it. If it continues to grow, it will slow down the entire network. This is not ideal for business blockchains, because the network must be both fast and safe.
Despite the drawbacks being presented above, blockchain techs have a lot of benefits offered to customers to ensure the safe traffic of the clients’ websites. So looking for a blockchain to install? Look no further than the certified blockchain expert Malaysia for more details.