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What are the Blockchain Issues and Limitations?

by emily joyce

If your the one who is constantly following investment, banking or cryptocurrency from the past ten years, then you might be familiar with the term “blockchain”. Blockchain technique is as a world-changing technology. It is a record-keeping technique behind bitcoin.

What is blockchain?

A blockchain is a ‘public ledger’ of content collected through the network. In simple terms, blockchain is a database that stores information. This data is not just stored in one place, the information is stored across several data servers. Everyone can access the information through the internet.

Every transaction performed through blockchain technology is secured with a cryptographic key.

The term blockchain completely owes it’s named in terms – ‘how it works’ and ‘how it stores the information’. The data is packed into multiple blocks that link to create a chain with several other blocks that consist of similar data. The act of linking blocks – chain can make the stored data trustworthy.

Blockchain technique is neither a company nor applications – It’s just a new and unique way of documenting information on WWW (internet).

The documented information on the blockchain can be considered in several ways:

  • Transferring money or a transaction
  • Agreement b/w two parties
  • The electricity consumption of a lightbulb
  • Authority or an authority identity

Blockchain technology has become a popular concept in digital IT world. Blockchain technique is used in both small and large company. Although this technique itself is an amazing revolutionary. There are few blockchain issues and limitations that can be cropped up.

Blockchain technology has spread the roots in several domains & industries such as social media platforms, asset management, games, stock exchanges, digital currencies, voting devices, retail, etc. However, like each other technique, blockchain is pretty complex. There are few operational and implementational barriers that limit the efficiency and effectivity of blockchain technology.

There are a few risky passes that everybody faces in any digital technological revolution. The blockchain technology is one among them.

Following are issues and limitations of blockchain:

Environmental cost

It’s a known truth that blockchain relies on encryption technique to provide high security and establish consensus through a distributed network. This is important in order to ensure that a user has authorized access to write, edit or update on the blockchain. To write on the chain, there are few complex algorithms need to be executed. This can lead to a huge amount of consumption power. Therefore, it comes as a high environmental cost.


“Blockchain technology” involves a new vocabulary! It has obtained cryptography as a mainstream, but for big brand industries, there is no place for a beginner.

Everyone is thankful for blockchain & cryptocurrency technology, these are specially designed for beginners. The toughest part is, these technologies have dark shades as well!! Do you think you can learn new technologies all overnight? Pretty difficult right. This can be complicated for any industry.

Since blockchain is associated with complexity and a stack of highly-specialized technical terms. Fortunately, a common person may feel difficult to understand the concepts.

Signature verification

Every transaction performed in blockchain should be signed digitally. Also, verified through a few cryptographic algorithms. These schemes can generate public, private keys for users.

Signature verification procedure may be time-taking and also difficult to compute.

Network size

Blockchain requires several nods, that means every user is considered as a nod in a network. Integrating multiple nods can form a large network. Therefore there are various reasons they can respond to attacks, access from unauthorized parties and grow strong.

This technology needs a huge n/w of users. If a blockchain technology is not a strong network with several distributed systems, it has become even more complex to reap the complete benefit. Therefore size really matters!!


Blockchain works in a different way!! To reach the destination node you must traverse each intermediate node in a network. In a centralized database, the traverser nodes can be done parallel, without visiting every node in a network. Therefore, the issue of high redundancy is been involved. This can affects the overall performance of a blockchain.

Security Flaw

There are several blocks are integrated into a blockchain every day. The vulnerabilities associated with the complete blockchain is also increasing.

There is a single security flaw has been encountered in bitcoin & other blockchain techniques. If there are over 50% of computers constantly tell a lie, at the end that lie becomes a truth over an entire network. This attack is a ‘51% attack. During the launch of bitcoin, the attack¬†was noticed by ‘Sathoshi Nakamoto’.

Human error

Human errors are the most common reasons for system failures. The same thing applies to blockchain as well. If you consider blockchain as a database to store the information. Then, make sure the data must be of high quality.  The information stored on the blockchain is not trustworthy.

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