What are the problems and limitations of the blockchain?

In every technological revolution has its own problems and pitfalls. Some people in the industry of the blockchain indicated that around technology too much noise, while it has its limitations and may not be suitable for all digital interactions. Let’s try to understand in depth how it relates to the blockchain.

Here are the problems and limitations of the blockchain currently known through research and testing by trial and error.

The contents

The complexity

Around the technology of the blockchain to a totally new terminology.

Source: 2Биткоина

Thanks to the blockchain cryptography has become more popular, but this industry is full of specialized jargon. Fortunately, attempts are being made to create a comprehensive and accessible terminological dictionaries and object pointers. However, beginners difficult to log in to the swing of things, so understanding can cause problems.

The size of the network

Blackany – as with all distributed systems, not so much resistant to attackers, how many anthropia. That is, they react to attack and become stronger.

Source: 2Биткоина

Anthropole — a concept introduced by the Professor, economist and trader Nassim Taleb in the book "Anthropist. How to benefit from chaos." It denotes the ability to capitalize on failures, losses and mistakes; the ability to harden, to grow and to become stronger when confronted with chaos.

However, this requires a large network of users. If the blockchain is no large and sustained distributed network of nodes, to take advantage of all its benefits becomes more difficult. Debate with regards to whether it a lack of projects, exclusive of the block chain.

Exclusive blockchain (the blockchain permissioned) — the blockchain where the transaction processing is carried out with a certain list of subjects with established personalities.

Transaction costs and the speed of the network

Now in Bitcoin there are significant transaction costs despite the fact that in the first years of its existence, its advertised as almost free.

The number of processed transactions per second and the size of blocks is limited, which can increase transaction fees.

Source: 2Биткоина

There is also the political aspect of the use of the blockchain not Bitcoin for transactions, and for storing information. This is often viewed with disapproval, as it forces miners to reprocess and overwrite information.

The human factor

If the blockchain is used as a database, the incoming information must be of high quality. The data stored in the blockchain, are not trusted by default, so first of all we need an accurate record of events.

The phrase “garbage in, garbage out” refers to the system of record of the blockchain is exactly the same as for a centralized database.

The inevitable flaw of security

Bitcoin and other block chain has one significant flaw security. If more than half of the computers acting as nodes (nodes) for network maintenance telling a lie, then the lie becomes the truth. This so-called attack 51 percent mentioned himself Satoshi Nakamoto in the creation and launch of Bitcoin.

Source: 2Биткоина

For this reason, the community closely monitors the mining pools of Bitcoin to anybody imperceptibly has not received such impact on the network.

Policy

Since records of blockchains offer the opportunity to digitize the management model and because the miners actually form another type of model-based management incentives, there are plenty of reasons for public disagreements between the different poles of community.

Source: 2Биткоина

These differences, the prominent characteristics of the industry of the blockchain. And they are most clearly expressed in the question is a fork of the blockchain, that is, the update process of the Protocol of the blockchain, which should be acceptable to the majority of users.

Such disputes can be technical and sometimes fierce, but they are informative for those interested in the combination of democracy, consensus, and new possibilities of experimentation with the control offered by the technology of the blockchain.

In our cryptodata blockchain enthusiasts you’ll find lots of other useful information. You can also drop in Yandex Zen.

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