Technology plays a pivotal role in transforming society. The blockchain is one such emerging technology. Blockchain technology is arguably one of the most promising technologies in the present digital era that can offer numerous benefits to the classes as well as masses. In fact, it is the very structure and objectives of BlockChain technology that makes it extremely useful. This technology works on the principles of decentralization and thus it can provide widespread benefits transcending the limitations of regions, income level, and sector. The objectives behind BlockChain technology development are appreciable but it might still need a good amount of time in order to overcome the challenges that have been preventing the technology from utilizing its maximum capabilities. Apart from technical challenges, there are various social challenges and issues that need to be resolved in order to make Blockchain realize its objectives. Here are a few major challenges and limitations that Blockchain technology is facing today:
Limited technical knowledge
While the Blockchain is gaining wide popularity across the globe, very few stakeholders know the intricate jargons and terminology related this technology. Besides, the lack of detailed documentation also prevents the stakeholders to know about the exact processes involved or even the overview of the same.
It prevents them from assessing the relevance of the technology for their purpose, present the queries to the experts or get the solutions.
In short, they are not able to get a clear picture of the BlockChain technology and eventually many investors drop the idea of investing their efforts, time and money on Blockchain projects.
Very few “real” experts
While the demand for the BlockChain technology is at a rise in the market the experts of this technology are few and far between. The easy availability of online tutorials and free video sessions are preparing a vast majority of Blockchain experts who lack real technical skills.
As a result, they can only provide theoretical knowledge and/or satisfy the potential clients with their confident communication. But when it comes to delivering the result or resolving technical issues, they find themselves in a tight corner.
While some are equipped with the knowledge to initiate the process many of them lack the required skills to resolve technical issues or upgrade to the next level.
So, this half knowledge could actually do more harm than good.
Lack of speed
Lack of speed is another major issue with Blockchain technology. Every single transaction needs to be verified. This verification process is quite cumbersome if we look at the entire picture as such transactions pass through numerous nodes and get verified by each of them.
It slows down the processing speed and delays the transactions.
While there have been some attempts going one find a more speedy process of verification, it seems that it should take a long time before some solid workable solution can be materialized.
Public exposure of transactions can be misused
While the identities of users are not disclosed, the transaction patterns are shared in the public ecosystem.
It gives a golden opportunity to smart hackers and other malicious elements to study the pattern and crack the identity by strategically linking the things and getting user information.
So there is always some possibility of this publicly exposed transaction pattern getting misused by the malicious elements and hurting the stakeholder’s interests.
Consent of majority
The process of Blockchain depends upon the consent of the majority of people. Hence if 50%+ people combine together to perform some “big fraud” then they can manipulate the system for their own vested interests. It can defeat the very objective of Blockchain technology.
While it can be argued that it is a hyperbole situation, we should also consider the fact that hackers and malicious elements are evolving at a very fast pace and can invent some technical means to perform this task.
Apart from public transactions, the BlockChain technology can also be used for the various organizations. Thus the majority of staff can decide to manipulate this facility and may misuse it for their own vested interests.
Blockchain technology is based on the principles of decentralization and has the potential to bring many positive changes across the globe. However, there are still a number of challenges that are stopping BlockChain Technology from realizing its full potential. This blog speaks about various such challenges and limitations of the technology. By working upon these limitations the Blockchain technological be made beneficial for the masses
Alisha is a content writer and director of operations. She writes for various industries like travel, wildlife, history, hosting, art, and of course technology! She works with B2B and B2C businesses providing digital marketing content that gains social media attention and increases their search engine visibility.