Question

what are the drawbacks and limitations of Blockchain ? Negative impacts

Answer 1

Meaning of Blockchain - Blockchain technology is an indestructible digital leader which keeps the track of all the economic transactions which can be programmed to maintain all the virtual transactions that has value, like financial transactions. It can accessed by everyone who has good internet connection. There are many companies that are harnessing the power of blockchain technology such as, messaging app, cloud storage etc.

Limitation of Blockchain

1. Extremely volatile - The one of many reasons of the extreme volatility of the blockchain is that because both the decentralized blockchain technology and virtual currencies are extremely new to the market. Because of it being new, companies and other groups are not adopting them will greatly affect the volatility.

2. Crime - There exists an anonymity in the decentralized blockchain and because of that they have become the second home for all illicit transactions. People utilized this platform to things like illicit transactions using blockchain.

3. Problem for not tech savvy - The blockchain technology are a big headache for those people who are not-so tech savvy and those who don not have proper knowledge of the technology.

4. Closing thoughts - Some people believe that the blockchain will help in creating crypto currencies which will in the future become the potential rival for the precious metals while many others believes that it will soon burst like a bubble and nothing more.

5. Transactions costs - As the network continous to grow, it can be seen that it is not cost effective option of transferring the money because of the rising transaction cost in the network.