What are the weaknesses of Blockchain technology?
You may have read my post about the benefits and advantages of blockchain technology (probably not), if you have read it, you may have the impression that blockchain technology is perfect, and the key to human freedom, the portal to a complete utopia and absolutely faultless. Well you’re wrong, blockchain technology still has a long way to go, right now when compared to the growth of the internet, blockchain technology is comparable to the dial up connection stage of the internet. Because of its youth there are still several major weaknesses in blockchain tech here are some of them:
It’s Slow!
Bitcoin, the first successful use case of the blockchain, the most popular of all cryptocurrencies and the most expensive, can only process around 7 transactions per second! Ethereum the second most popular blockchain use case can only handle up to 20 transactions per second! To put that into context in 2016 Visa on average processed 1,667 transactions per second. There are lesser known blockchains that are popping up and boasting faster transaction times, however they are all very young and untested. The bottom line is that blockchain technology has a long way to go if cryptocurrencies are to become the mainstream form of payment for goods and services.
Blockchain Immutability vs Right to be Forgotten Laws
The right to be forgotten law which went into effect in May 2017 enforced by the EU in their new General Data Protection Regulation (GDPR), gives individuals the right to rectify or delete any data that affects him or her, or has been posted or uploaded without their consent. This right is in direct conflict with one of the blockchains most prominent features, it’s immutability. One of the blockchains use cases is data storage, so for example, imagine a file with images or documents you would like to be kept private (cough cough nudes) has been uploaded to the blockchain, how do you remove them? There are things in place that could rectify this, like Blockchain oracles which have the power to change things in the blockchain and other more centralized options, however the issue with these of course is that they are centralized, therefore diminishing another one of the benefits of the blockchain.
Complexity
One of the biggest barriers between blockchain technology and the wider population is just how complicated it is, and how difficult it is to understand and use for the average person. From hash rates, to address keys, Orphan blocks, Uncles and hard forks the world of the blockchain is just full of concepts and processes that haven’t been refined enough yet for your little old grandma or even your parents to use. In my opinion, when grandma has a chance of understanding how to use the blockchain, that is when it’ll be ready for worldwide mainstream use.
Overall
On the whole the big brains currently behind the growth of blockchain tech are working on solutions to these weaknesses. As I mentioned before blockchain technology is young, and improving every day, the fact that it is capable of so much in its infancy is incredibly promising and it’s potential to completely change the world grows with each second. But for now the tech continues to fill the world with excitement and people from all industries will be keeping a very close eye on its development…..if they aren’t busy working on their own blockchains.
