Challenges to Blockchain

Blockchain technology is at its star stage. Everyone is talking about blockchain-based initiatives and the ways to implement them. It provides a decentralized network for recording data transactions.???

?Yet, all technologies have advantages and disadvantages, and blockchain is no exception. Like any other technology, there are challenges to effective blockchain implementation. But before we start exploring them, let’s understand blockchain first.??

?

What is a blockchain???

A blockchain is a linear series of end-to-end connected blocks. Each block is a storage space that stores information regarding data transfer. Once filled, the block is sealed and stored in an unknown location.??

?Altering a single transaction will make alterations in the whole chain. It makes it impossible for hackers to find and misuse sensitive information.??

?

Challenges to blockchain??

Lower adoption rates:??

Public blockchains rely upon a network of nodes (hardware devices) to function. These nodes are also known as mining rigs in cryptocurrencies. These rigs solve highly complex mathematical problems to compete for the right to validate a block. They then obtain a reward in the form of freshly mined cryptocurrencies.???

In other words, one must have an attractive reward mechanism to fuel block-validator adoptions. It may take a lot of time to build a dense node infrastructure.???

Lack of skilled resources:??

Blockchain is catching a lot of headlines for its success with cryptocurrencies and decentralized finance (de-fi). Yet, it’s hard to find skilled blockchain professionals.?

Blockchain is still in its early stages, and people are beginning to learn its capabilities and functionalities. In such a case, businesses must look for lean hiring models like staff augmentation. It enables them to acquire quality blockchain resources on a contractual basis.???

Latency:??

The linear nature of blockchains causes delayed transactions. For example, when you make a crypto transaction, you enter a queue to get it validated. Think of it as standing in line to get your bank passbook printed.??

In other words, blockchain can validate a fixed number of transactions in a second. Yet, blog validators prioritize transactions with higher monetary value.???

?

Conclusion:??

While blockchain has ample future possibilities, it has several shortcomings. Yet, this fact is catching the eyes and fueling blockchain innovation. It is the reason behind the growth of the BAAS industry.???

As in the past, early adaptors will benefit enormously from blockchain. Businesses must aspire to integrate blockchain into their existing operations. It will help them move towards a decentralized world and enhanced data security.?

?