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What Are the Limitations of Blockchain?

by CryptoWordTalk

Any technological revolution involves perilous forays into uncharted territory.

Some in the blockchain sector have said that the technology has been overhyped, despite the fact that it has limits and is unsuitable for many digital transactions.

However, we’ve discovered the existing problems and limits of blockchains via development and research, failure and success. Blockchains (like other distributed systems) are antifragile, which means they react to assaults and become stronger.

However, this requires a big user base. It becomes more difficult to fully benefit from a blockchain if it is not a strong network with a broadly dispersed grid of nodes. Certain people are debating whether or not this is a fatal issue for some permissioned blockchain systems.


Blockchain technology necessitates the use of a completely new lexicon.

It has made cryptography more accessible to the general public, although the highly specialized business is rife with jargon. Thankfully, many attempts have been made to provide comprehensive and easy-to-understand glossaries and indexes.

Errors Made by Humans

If a blockchain is utilized as a database, the data that is entered into it must be of good quality. Because the data kept on a blockchain is not intrinsically reliable, events must be properly documented in the first place.

In a blockchain system of record, like in a centralized database, the expression “garbage in, garbage out” remains true.

Costs of Transactions and Network Speed

After being marketed as “near free” for the first several years of its existence, Bitcoin now has significant transaction fees.

The fact that the bitcoin blockchain is being used as a data storage system rather than a transactional system is also politically contentious. This is known as “bloating,” and it is frowned upon since it requires miners to constantly reprocess and re-record data.

Security Flaw That Can’t Be Avoided

One major security issue in bitcoin and other blockchains is that if more than 50% of the network nodes declare a falsehood, the lie becomes the truth. This is known as a “51 percent attack,” and Satoshi Nakamoto mentioned it when he first launched bitcoin.

As a result, the community carefully monitors bitcoin mining pools to ensure that no one unwittingly acquires network power.


Because blockchain protocols allow for the digitization of governance models and miners are basically creating a new kind of incentive governance model, there have been many chances for public disputes between various community segments.

These disputes are a common occurrence in the blockchain sector, and they are most visible when it comes to the issue of ‘forking’ a blockchain, a procedure that entails changing a blockchain protocol once a majority of its users have consented to it.

These discussions may be technical and contentious at times, but they are instructive for anyone interested in the combination of democracy, consensus, and new possibilities for governance experimentation that blockchain technology is enabling.

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