Myths about Blockchain
It solves every problem
No, it is just a database
It can shift trust and also spread trust
It focuses integrity and not confidentiality
Smart contracts are always legal
It only executes parts of some legal contracts
It only offers probabilistic immutability
Need to waste electricity
Emerging blockchains are efficient
It is inherently unsalable
Emerging blockchains are scalable
Limitations of Blockchain technology
Higher costs: Nodes seek higher rewards for completing transactions in a business which work on the principle of Supply and Demand
Slower transactions: Nodes prioritize transactions with higher rewards, backlogs of transactions build up
Smaller ledger: It is not possible to a full copy of the Blockchain, potentially which can affect immutability, consensus, etc.
Transaction costs, network speed: The transactions cost of Bitcoin is quite high after being advertised as ‘nearly free’ for the first few years.
Risk of error: There is always a risk of error, as long as the human factor is involved. In case a blockchain serves as a database, all the incoming data has to be of high quality. However, human involvement can quickly resolve the error.
Wasteful: Every node that runs the blockchain has to maintain consensus across the blockchain. This offers very low downtime and makes data stored on the blockchain forever unchangeable. However, all this is wasteful, because each node repeats a task to reach consensus.
With this, we have come to the conclusion of the “Blockchain made easy” series. We hope you have learned something fresh, new and different in the past few weeks. Please stay expectant as we’ll be dishing out new information next week.
Written By: Ben
Edited By: Mosun
Graphics By: Jacobite