Blockchain is an enormous potential technology with tremendous utilization in the tech industry. Decentralized exchanges, prediction markets, asset management platform, digital identity are the few of the applications of the blockchain technology.
Blockchain has several major technical barriers that make it impractical for mainstream use at scale. Among them some of the major barriers are:
Limited Scalability
Blockchains are fundamentally “decentralized” which depicts that no central party is responsible for securing and maintaining the system instead every single node on the network can secure the system by processing transaction.
Limited Privacy
Blockchain transactions are not tied directly to your identity as anyone can create a new wallet anonymously and can transact through that wallet. Identity verification data like security numbers that cannot be openly stored in public smart contracts. Credential management is another factor which is not managed in an open, ultimately unsecured smart contracts.
Lack of formal contract verification
Formal verification of smart contracts is a major unsolved problem by understanding what a “formal proof” is. Formal verification is used to determine whether the program behaves as per the specification or not.
Storage Constraints
Under the blockchain, database data are stored by every full node in the network and is stored indefinitely since the blockchain database is append-only and immutable. Therefore, storage remains a huge hurdle for realistic applications that are built on the blockchain.
Lack of governance and standards
Decentralized blockchain platforms don’t have any centralized authority to control and it’s completely trustless, open, and a permissionless system where no one responsible for setting and maintaining standards.
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