Each time technology advances, the benefits you gain come with risks. Since its emergence, those who use the cryptocurrency processor Blockchain have begun to question whether it is overhyped. Through a combination of anecdotal experiences and thorough research, Blockchain users have identified some of the perils of using the channel. By learning more about them, we get a deeper insight of what the current limitations are.
The Channel’s Complex System Makes it Difficult to Navigate
Initially, the channel’s appearance made it possible for those who were new to cryptocurrencies to access Bitcoin. However, in order to navigate the system those who were new to the field had to navigate their way through its jargon. To mitigate this, the technology company provided a glossary, making it easier to work through.
The Cryptocurrency’s Network Size Could Pose Security Risks
. As the network grows, it doesn’t proactively keep security risks at bay. Instead, it employs tombstone technology by responding to attacks and developing its approach accordingly. Unfortunately, if the cryptocurrency’s network doesn’t maintain a broad breadth of nodes, it will struggle to keep attacks at bay.
As Bitcoin’s user base grows, the costs of processing transactions grow with it
While Bitcoin’s growing user base isn’t a challenge that’s unique to Blockchain, it’s one that’s worth acknowledging. At present, Bitcoin is only able to process seven transactions per second. Each transaction produces a miner’s fee, and as the currency’s worth continuously fluctuates, so does the processing charge. The most recent fees are $0.20 and can only store 80 bytes of data per transaction. Additionally, the currency courts controversy with the way it manages data. As Bitcoin maintains it approach to bloating, it forces users to repeatedly mine. Because of the repeated mining, they then incur further fees.
When Combined, Blockchain’s Data Processing with Human Error Creates Further Problems
Like all databases that rely on human input, the network’s data quality is only as good as those who are entering it. As such, when those who struggle to use the system enter it incorrectly, the network stores said incorrect information. Additionally, they’re able to retrieve their contributions after adding them.
Bitcoin’s Security Flaws Could Cause the Network to Collapse
When creating Bitcoin, Satoshi Nakamoto generated a security technology that would cause it to crash. Said technology will force the network to recognise incorrect input when it accounts for more than 51-percent of its data. One consequence of the prospective attack is that a sudden surge of incorrect data would lead to a crash. To avoid a crash, Bitcoin communities monitor their mining pools carefully.
Blockchain and Politics Can’t Remain Separate
At its launch, Bitcoin appealed to Libertarian individuals due to its financial separation from state. However, forced regulation means that the gap between cryptocurrency and the government continuously closes. One positive aspect of the regulation question is that technology experts debate it frequently in the news. Because of the ongoing debates, it becomes more mainstream, allowing the jargon and processes to become more accessible to everyday users. Arguably, an increase in accessibility results in fewer human errors, resolving some security concerns.