Disadvantages of blockchain technology
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Disadvantages of blockchain technology
One of the major disadvantages of blockchain technology is human error. It is recommended that the information that is fed into the blockchain technology framework should be of high quality. The data that is stored in the blockchain is not 100% trusted, and this is because of human errors as people are prone to mistakes. The phrase which goes garbage in garbage out holds water for the use of the blockchain initiative. The challenge of human error can only be addressed by ensuring that the events are accurately recorded.
Besides that, the other limitation of blockchain technology is that it is associated with unavoidable security flaws. This happens in that if more than half of the computers in the network tell a lie, then the lie becomes the new truth in the whole network and system, an aspect that is referred to as the 51 attack (Aceves-Fernandez, 2018). This kind of limitation is so difficult to handle and overcome as it may not be easy to detect whether a computer is telling the truth or lies in the first place.
Last but not least, the other disadvantage or rather limitation with the blockchain technology is that it lacks full anonymity. In other words, anonymity is not at all. As a result of this limitation, the authorized parties can see everything. This poses a risk to transacting parties such as the involved business organizations and this is supported by the assertion that too much information poses danger. To this end, it can, therefore, be concluded that excess transparency in matters financial is a downside of the blockchain technology.
References
Aceves-Fernandez, M. A. (2018). Artificial intelligence: Emerging trends and applications
. London: Intech Open.