Blockchain technology is without a doubt one of the most innovative technologies of this decade. Surprisingly, we have yet to realize the potential of this emerging technology fully. The term “blockchain” became popular a few years ago when Satoshi Nakamoto (Pseudonym) first published his research on the subject on the internet.
Many tech experts have even begun to refer to blockchain as “Digital Gold,” and recent statistics back this up. Indeed, the total value of this technology is expected to exceed $100 billion USD.
Furthermore, blockchain technology itself is made up of various subsets, such as cryptocurrencies. Bitcoin, one of the most well-known cryptocurrencies, recently celebrated its 10-year anniversary. This is why the number of blockchain development companies has grown at an exponential rate in recent years.
Blockchain technology, like writing, teaching, and researching, has room for improvement. Nothing is perfect, but it can be improved to better meet the needs of humans. It raises some serious concerns, including the blockchain performance issues listed below, which require immediate attention.
1. Human Error
Human error is one of the most common issues that have a direct impact on blockchain performance. Consider blockchain as a database in which the information stored must be accurate and of high quality. However, because the data storage process is dependent on humans, the possibility of human error increases.
2. Transaction Fees
Other significant blockchain technology issues include network speed and transaction fees. Back in 2016, blockchain technology could only process about six to seven transactions per second, with each transaction costing about $0.20 and having a storage capacity of only 80 bytes. On the other hand, the bitcoin cryptocurrency now has the lowest transaction cost and is almost free.
3. Complexity Level
Despite its innovative features, there is a reason why blockchain technology has yet to fully penetrate the mainstream industry verticals. This is due to its complexity, which has resulted in several intriguing features remaining unexplored even today.
However, extra efforts are being made in this regard, and more professionals are aspiring to become blockchain developers to better understand and assist businesses in implementing it.
4. Network Size
Because of their anti-fragility, blockchains behave like distributed systems and are not very resistant. This means that they get stronger with each attack on the system. As a result, blockchain requires a large network of end users.
5. Security Flaws
Nothing in the world of technology is perfect, and blockchain technology is no exception. A significant flaw in blockchain bitcoin is that if more than half of the computers acting as nodes in the system support a false statement, the false statement becomes dominant and is treated as true in the system.
As stated above are blockchain performance issues all startups should look out for. With blockchain technology being integrated into various mainstream sectors, we will undoubtedly see more blockchain advancements and a reduction in the number of blockchain limitations in the future.
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