Before we dive into its limitations, let’s revisit the basics. Blockchain is like a digital ledger, a chain of blocks containing information. Each block stores a list of transactions, and once added, it cannot be altered, making it secure and tamper-proof. Blockchain operates in a decentralized manner, meaning there’s no central authority overseeing it. This transparency and security are the core strengths of blockchain.
The Limitations of Blockchain Technology
1. Scalability Challenges
Imagine a blockchain network as a highway. Initially, it’s smooth sailing with just a few cars (transactions). However, as more vehicles join the road, traffic congestion occurs. Similarly, blockchain networks face scalability issues when the number of transactions increases significantly.
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