5 Key Challenges in Blockchain

Now days Blockchain is one of fastest growing field. Despite a large number of supporters supporting this technology, we still have the drawbacks which need to be addressed. In this article I am going to threw some light on few important challenges in Blockchain.

Below are five key challenges in Blockchain.

1. Big Initial Cost:

As Blockchain is a new technology, you need to invest in this new technology for gaining knowledge for your team, development, testing and till production environment. It involves more cost at initial phase.  The organisations need to spend a lot of budget in training, setting up the infrastructure and other areas of cost, thus it makes a costly affair for Blockchain.

2. Huge Energy Consumption:

Energy consumption is huge in case of public Blockchain. A rise in the number of crypto asset users, traders and investors translate into an increasing demand for crypto mining. It leads into an energy-intensive procedure that consumes a significant amount of electricity.

As per the whitepaper published in June 2017, the energy consumers in Bitcoin network can be used by 700 average American houses. With such a large consumption of energy, it becomes mandatory to come up with an alternative consensus mechanism that could consume less power.

3. Privacy & Security:

If a Blockchain is public, every transaction ever recorded on the Blockchain is available for anyone to look at. As you are not directly recognized on network, there is relatively low risk. Yet there are many privacy policies which are having robust requirement, which Blockchain is not able to fulfill due to distributed database. Even your wallet in local browser can be hacked and there is still privacy issues.

Many hackers are and must be hunting for processing power to “mine” for coins (aka crypto-jacking) and target large enterprises with big computational energy. Apart from it, small early stage Blockchains tend to be especially vulnerable to attacks. If hacker get control of 51% of nodes on the system, they can possibly ruin the integrity of the Blockchain network. It is mostly possible when someone has just launched a new cryptocurrency with only a dozen or couple of nodes, with millions of nodes afterwords will be quite difficult for hackers.

In short, bigger Blockchain network will provide more chances of security.

4. Public Perception:

People don’t see Blockchain be a part of mainstream functioning. Also, most of the people believe that this technology will not last long. The feature like the lack of governance, easy access to become a member of public Blockchain and lack of regulation further deteriorates the image of Blockchain in the eyes of people.

5. Integration with Legacy Systems:

Generally organizations has huge data residing in legacy system, also they have invested a lot over a time on existing legacy systems. There are yet much technology progress needed for integration with legacy system in Blockchain. It is not easy task.

All these factors contribute as challenges for the growth of this Technology.

GrassDew IT Solutions Pvt Ltd can help your business to develop solution in blockchain. We provides consulting services, software solution services, security services, digital marketing and knowledge services.

To know more about our services you can contact us at [email protected]

Keep reading our articles and do provide your feedback in comments!

9 Key Reasons Causing Big Data Need

3 W's for Gas in Ethereum

3 Important Impacts of Downtime

4 Key Features of Blockchain

9 important points to understand BlockChain

4 Key Knowledge Areas to Knockout First Step of Hacker

6 Tips to Prevent Social Media Hack

6 types of IT Security areas

11 contributing factors for Information Security threats

4 Key Benefits of Vulnerability Assessment and Penetration Testing (VAPT)

4 key purposes of Digital Content Marketing (DCM)

3 important benefits of AdWords in Digital Marketing

4 Essential Qualities Good Leaders Has

6 Key Focus Areas of Marketing Manager

6 Impacts of Social Media on Business

7 Key Focus Areas Being CEO

4 Essential Business Marketing Strategies

5 Key Benefits You Gain by Trainer's Experience Sharing

4 Consumer Behaviour Every Business Should Consider

3 aspects of Chatbots vs Customer service executive

7 key steps of Sales Funnel

Identifying Suspects, Prospects, Customers and Clients

5 Benefits of Soft Skills Training in your Organization

5 Myths about Digital Marketing

9 types of ads formats

5 Key Benefits of Internship

5 Time Management tips to increase Productivity

Air Team Theory by Shekhar Pawar

7 key differences between REST vs SOAP Web Services

5 Key Benefits of Case Studies in Business

5 Key Benefits of using Website Analytics for the Business

5 Points To Consider Once You Did A Mistake

Too Much Noise ~ Listen Your Voice