Even though various use cases and proof of concept systems have been developed and the technology works well for many of the scenarios, there still is a need to address some fundamental limitations that are present in blockchains in order to make this technology more adaptable.
At the top of the list of these issues comes scalability and then privacy.
Why It’s Hard and How Developers Are Solving It (Part 2)
Both of these are important limitations to address, especially as blockchains are envisioned to be used in privacy-demanding industries too.
There are specific requirements around confidentiality of transactions in finance, law, and health, whereas scalability is generally a concern where blockchains do not meet the adequate performance levels expected by the users.
These two issues are becoming inhibiting factors toward blockchain technology’s wider acceptance.
A review of currently proposed and ongoing research in these two specific areas will be presented .
In addition to privacy and security, other challenges include regulation, integration, adaptability, and security in general.
Although, in Bitcoin blockchain security is bulletproof and has stood the test of time, there still are some caveats that may allow security to be compromised to an extent in some subtle scenarios.
Why This Matters for Blockchain Technology
Also, there are some reasonable security concerns in other blockchains, such as Ethereum, regarding smart contracts, denial of service attacks, and large attack surface.
All of these will be discussed in detail in .
Scalability and Other Challenges This chapter aims to provide an introduction to various challenges that need to be addressed before blockchains can become a mainstream technology. Even though various use cases and proof of concept systems have been developed and the technology works well for many of the scenarios, there still is a need to address some fundamental limitations that are present in blockchains in order to make this technology more adaptable. At the top of the list of these issues comes scalability and then privacy. Both of these are important limitations to address, especially as blockchains are envisioned to be used in privacy-demanding industries too. There are specific requirements around confidentiality of transactions in finance, law, and health, whereas scalability is generally a concern where blockchains do not meet the adequate performance levels expected by the users. These two issues are becoming inhibiting factors toward blockchain technology’s wider acceptance. A review of currently proposed and ongoing research in these two specific areas will be presented . In addition to privacy and security, other challenges include regulation, integration, adaptability, and security in general. Although, in Bitcoin blockchain security is bulletproof and has stood the test of time, there still are some caveats that may allow security to be compromised to an extent in some subtle scenarios. Also, there are some reasonable security concerns in other blockchains, such as Ethereum, regarding smart contracts, denial of service attacks, and large attack surface. All of these will be discussed in detail in .
Key Points to Remember
- Even though various use cases and proof of concept systems have been developed and the technology works well for many of the scenarios, there still is a need to address some fundamental limitations that are present in blockchains in order to make this technology more adaptable.
- At the top of the list of these issues comes scalability and then privacy.
- Both of these are important limitations to address, especially as blockchains are envisioned to be used in privacy-demanding industries too.
- There are specific requirements around confidentiality of transactions in finance, law, and health, whereas scalability is generally a concern where blockchains do not meet the adequate performance levels expected by the users.
Conclusion
Scalability and Other Challenges represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.