Learn The Disadvantages Of Blockchain - 101 Blockchains

1. DISADVANTAGESOF BLOCKCHAIN 101blockchains.com

2. Blockchain is a decentralized and distributed ledger system. In blockchain technology, the data is stored within blocks and then linked to one another, forming a chain of blocks. Whatis Blockchain? The ledger is also immutable, meaning once the data is in the ledger, no one can alter or delete that data.

3. KeyFeaturesofBlockchain Immutability Decentralized Enhanced Security Consensus protocol Faster Output

4. DisadvantagesofBlockchain Technology Not a Distributed Computing System Unavoidable Security Flaws Users Maintain Private Keys Low Scalability Not Energy Efficient Cost Struggle Difficult to Replicate Data is Immutable Inefficient Process Privacy Concerns Interoperability Support for Legacy Systems No Regulations Maturity

5. NotaDistributed Computing System Blockchain is a distributed network, but it’s not a distributed computer system. In a distributed computer system, the network actually does not depend on the participation of the users. But in blockchain, it heavily depends on the participation of quality nodes. Here, all nodes perform the same task, which means it lacks mutual assistance and synergy.

6. LowScalability Most blockchain platforms are still not scalable enough. Transactions within this technology depend heavily on network congestion. Thus, the more people will join the network, the more the network will slow down. There are solutions on the way, but the blockchain is still not well-equipped to handle real- world requirements.

7. NotEnergy Efficient Some of the public blockchain platforms, such as Bitcoin or Ethereum, are not energy efficient. For example, platforms that use the Proof of Work consensus protocol consume a lot of electricity, which is not beneficial for the environment. On the other side, there are platforms that offer energy-efficient options, but these are not widely adopted yet.

8. It’s an advantage and disadvantage of blockchain technology at the same time. In a blockchain, once data gets added to the ledger, it can’t be altered. So, it becomes an absolute constant. Datais Immutable Unfortunately, human-made errors can lead to discrepancies within the system as they can’t be fixed. Also, if an entity holds more than 50% of the nodes, that entity can break this immutable nature of blockchain.

9. Inefficient Process Blockchain can be inefficient under certain conditions. The efficiency of blockchain technology varies from platform to platform. Some platforms can offer more output compared to others. In most cases, when there are too many users within the network at a time, it can create slower transaction processing. This is not ideal for commercial purposes where thousands of transactions need to happen within a small-time frame.

10. Unavoidable SecurityFlaws Blockchain offers security, but it’s not 100% secured. It’s vulnerable to 51% attack. It’s also quite vulnerable against quantum computing systems. Also, users can exploit certain loopholes within a contract to manipulate the system for their gain. So as for now, it does not offer security against all types of cyber- attacks.

11. Blockchain does offer a great deal of control to its users. Here, users will need to own and maintain their private keys, which is extremely crucial in accessing all the assets stored on the ledger. UsersMaintain PrivateKeys If users fail to keep the private key secured or even lose it, they will lose their network access and assets. Unfortunately, many users aren’t tech- savvy enough to avoid such mistakes.

12. Implementing blockchain-based solutions from scratch is a costly investment. Although many platforms are open-sourced, and they still need moderations for which hiring an expert team is necessary. CostStruggle Also, bigger enterprise companies have a huge network system, which adds up to more investments and maintenance costs. Therefore, it can become a burden.

13. Blockchain comes with a complex network infrastructure. To implement a new blockchain project, developers need to have extensive knowledge of the subject. Difficultto Replicate Developers need to learn about cryptography, hash functions, consensus algorithms, etc. Without being a blockchain expert, software developers can’t replicate any type of blockchain platform.

14. Blockchain technology is a new technology that is still in the development phase. It requires more time to mature and become an acceptable technology across the globe. Maturity As there are still persistent issues, enterprise companies find it hard to rely on this technology. Unfortunately, without giving adequate time for this technology to mature, this issue will not be resolved. Js ( ) { } </>

15. Interoperability is a major disadvantage of blockchain technology. There are many blockchain platforms on the market now, but the lack of a common standard for developing these platforms is making them isolated from one another. Interoperability Cross-chain communication can streamline a lot of sectors; however, blockchain is still far behind in developing a functioning interoperable network.

16. As most businesses use legacy systems to facilitate their processes, using the blockchain instead of these systems will require additional investments. Supportfor LegacySystems At the moment, blockchain does not fully support integration with legacy systems, which means these companies will need to completely get rid of their previous networking system. This is not feasible for a lot of companies.

17. This is an issue specifically for public blockchain platforms. In a public blockchain, the data is anonymous and encrypted; however, it’s still open for everyone to see from the ledger. Privacy Concerns One can track down a particular address by going through the transaction processes on the ledger. However, private blockchains get rid of this problem.

18. No Regulations The blockchain platform does not have any governing authority. This means it does not have any specific regulations to follow. Regulations help users to maintain fair play within the network, which is not present in many blockchain platforms.

19. LearnMoreAbout DisadvantagesofBlockchain Hyperledger Fabric Development Course Blockchain Like a Boss Masterclass https://academy.101blockchains.com/courses/ blockchain-masterclass https://academy.101blockchains.com/courses/hyper ledger-fabric-development-intermediate-level Ethereum Development Fundamentals Beginner’s Guide to Corda Development https://academy.101blockchains.com/courses/ beginners-guide-to-corda-development https://academy.101blockchains.com/courses/et hereum-development-fundamentals

20. 101BlockchainsCertifications Certified Enterprise Blockchain Professional Certified Enterprise Blockchain Architect Certified Blockchain Security Expert https://academy.101blockchains.com/ courses/blockchain-expert- certification https://academy.101blockchains.com/cour ses/certified-enterprise-blockchain- architect https://academy.101blockchains.com/cours es/certified-blockchain-security-expert

21. WhyYouMustGoWith101Blockchains CertificationCourses? Various Training Strategies for Faster Learning High-Quality Research Information First-class Training Content Tangible Proof of Course Completion Interactive Exercises Weekly Hands-on Assignments Flexible Learning Using Modular Approach Professional Instructors Access to Bonus Training Materials Premium Support

22. FreeResources Enterprise Blockchains Fundamentals - Free Course Blockchain Glossary Blockchain Flash Cards Blockchain Presentations Blockchain Infographics Blockchain Webinars Blockchain Conferences Access Free Resources Now!

23. TrustedBy30,000+ Professionals! Read real stories on Trustpilot and G2Crowd. 500+ reviews

24. Disclaimer The presentation is not intended to provide any investment advice and should not be taken as such. Claims made in this presentation do not constitute investment advice and should not be taken as such. Do your own research! While the information contained in this document and presentation has been obtained from sources believed to be reliable, 101 Blockchains disclaims all warranties as to the completeness or accuracy. Although 101 Blockchains research and training may address business, financial, investment and legal issues, 101 Blockchains does not provide any business, financial, legal or investment advice and this training should not be construed or used as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this presentation.

25. ThankYou © 2021 101 Blockchains. All rights reserved. This document may not be distributed, transmitted or reproduced in any form or by any means without 101 Blockchains’ prior written permission. While the information contained in this document has been obtained from sources believed to be reliable, 101 Blockchains disclaims all warranties as to the completeness or accuracy. Although 101 Blockchains research may address business, financial, investment and legal issues, 101 Blockchains does not provide any business, financial, legal or investment advice and this document should not be construed or used as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this publication.