Do You Know Blockchain Also Has Few Limitations?
Besides developing crypto-currencies, the blockchain technology seems to have enormous potential to change the way we conduct transactions, such as paying for products and services, securing important data, making transactions transparent and making electoral process more secure. Like every emerging technology, blockchain has stirred extravagant expectations among tech experts, entrepreneurs and consumers but the fact is that technology always has limitations.
Therefore, it would be wise to understand the limits of the technology. Let’s have a look at few of these issues.
Blockchain Complex Terms and Jargons
To fully understand the blockchain technology, you need to comprehend its complex terms, industry jargons and abbreviations. Even it is difficult for tech experts (whose expertise falls outside blockchain) to grasp the concept as the use of industry specific acronyms and jargons add more to the difficulty.
Thankfully, experts are doing utmost efforts to provide related indexes, glossaries and vocabulary to let people understand it easily.
Public Acceptance Barrier
A blockchain is only strong within its network of users. Many businesses have adopted blockchain technology and having successful venture with private network but unless, it gains general public trust, one cannot reap its complete benefits.
And to reach to that level, it needs government regulations and clearance of technological barriers to help masses understand and fully comprehend the underlying concept.
Susceptible to Human Error
The information and the data added to the database must be recorded accurately. However, it is nearly impossible to eliminate the human error factor. The system seems to be tamper-proof but let’s suppose, when blockchain technology is applied in supply chain, there is a risk that someone could register inaccurate data as the system cannot force anyone to adhere to the truth. It means incorrect information goes into the blockchain, unreliable data will come out from it.
Experts believe that with time the system will become mature and businesses may be able to reduce human error element by shifting the process to internet-connected devices with blockchain to manage supply chain.
When bitcoin (a form of crypto-currency) was launched years ago, transaction of the digital currency was almost free but with time, transaction costs increased. Moreover, the aspect of using blockchain is also changed, which is not for virtual coins transactions but as information storage mode.
Experts claim that the blockchain should not concern about transactions but the data storage instead. This leads to another topic called blockchain bloating, which means increasing numbers of transactions and adoption of particular digital currency along with growth. However, it also means more data coming in, which needs active and immediate storage of all that information. If bitcoin keeps on growing at the current rate, soon blockchains will become terabytes in size.