What are the disadvantages of blockchain technology?

31 Oct 2022 By PAYCEC

The disadvantages of blockchain are listed below:

Scalability: One of the most significant disadvantages of blockchain technology is that it cannot be scaled owing to the set size of the block for storing information. Because the block size is 1 MB, it can only carry a few transactions on a single block.

Immaturity: Because blockchain is only a couple of years old, people do not have much confidence in it, and they are not ready to invest in it. However, several applications of blockchain are doing well in various industries, and it still needs to win the trust of even more people in order to be recognized for its full utilization.

Energy Consumption: Because validating any transaction consumes a lot of energy, it becomes an issue. According to the survey, 0.3 percent of the world's electricity was consumed in the verification of transactions done using blockchain technology by 2018.

Time-consuming: In order to add the next block in the chain, miners must compute nonce values numerous times, which is a time-consuming operation that must be sped up before it can be utilized for industrial purposes.

Legal Formalities: Because of environmental concerns, several nations prohibit the use of blockchain technology applications such as cryptocurrencies, and they do not promote the use of blockchain technology in the commercial sector.

Storage: Because blockchain databases are stored on all network nodes, there is a storage issue; as the number of transactions increases, more storage is required.

Regulations: Blockchain is encountering difficulties with several financial institutions. Other components of technology will be necessary in order to fully implement blockchain.

Have other questions?

If you need further assistance or answer, please don't hesitate to contact us.

Have other questions?

The Media

Finextra One IBC Yahoo Finance
About us

who we are

about us

We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.

Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.

PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.

We will contact you shortly.

Email Phone
Scroll top