Disadvantages of blockchain that limit its usability.
In this video we will cover disadvantages of blockchain you simply NEED to know.
It’s important to know that there are many benefits to using blockchain, but there are some key limitations as well. You need to understand these as you actually consider whether to use blockchain or not.
The first one I want to point out to you is that the information recorded on blockchain is immutable. What that really means is there’s no reversals or modifications. So if you have a business process where you usually do modifications to certain orders or anything along the way, there is no reversal or modification. The only way that you can actually change records on a blockchain is by creating a new transaction that makes a modification.
You do not eliminate the original one. You will always keep a copy of the original transaction and you will only append a new block of transactions and include a new transaction that changes what the results of the first one were. So there is no true modification. What you are doing is creating a new transaction that may affect the results that were recorded previously.
Another key thing I want to point out is that key management is essential when it comes to blockchain. Blockchain uses cryptography and the concept of private keys is very important in blockchain. That is how you can keep track of who has performed what within the blockchain.
As a result, these private keys are critical to the safety and integrity of the blockchain. As a result, you need to be very, very certain that the way you manage those keys is as secure and as tight as possible. Another one I want to point out is scalability. Blockchain keeps track of every single transaction done. As a result, you wind up having very large data sets.
This may present some challenges to people who have very, very large numbers of transactions, as you may wind up with very large databases. Other things you need to consider are as you increase the size of the network and add additional nodes. There may be challenges involved as you scale that blockchain out. One last one I want to point out is time to process. What I mean by this is that while it is very, very fast to have a centralized database. You can just make a change and the changes are reflected instantly.
When you’re dealing with blockchain, you have multiple copies of the blockchain. And you need to wait until you actually achieve consensus across all the nodes that have a copy of that blockchain.
As a result, the time to process can be far slower than actually a centralized database solution.