For all the positives associated with blockchain technology, there are still many problems to overcome regarding the technology. Blockchains aren’t completely free from hacks or centralized control especially with chains that lack a vibrant ecosystem of network participants or well-designed consensus mechanisms. Blockchains also vary in their level of decentralization and throughput - the amount of data they can process in a given period of time usually measured in transactions per second (TPS). A tremendous amount of attention is dedicated to solving the ’Blockchain Trilemma’ — balancing and maximizing scalability, decentralization, and security in a blockchain network. It is theorized that a blockchain can only ever solve two of the three factors of the Blockchain Trilemma at any given time. Emerging networks, such as Cherry Network, will increasingly improve each of the variables of the Blockchain Trilemma.
Other concerns focus on the technological complexity of blockchain technology. Individuals and entities oftentimes do not have neither the wherewithal nor the time and patience to learn all the ins and outs of the technology. This lack of education has hampered the pace of adoption of blockchain for many. The spread of misinformation about blockchain, its use cases, and its negative effects has also contributed to a negative connotation of the technology in many people’s minds. Easier to use networks, protocols, and tools and enhanced education programs like this one will go a long way in increasing the general public’s knowledge about blockchain.
Many blockchain critics frequently comment on environmental issues associated with the technology. Proof-of-Work (PoW) consensus mechanisms typically require massive amounts of power when mining new blocks on the chain. Even though more ad more miners are relying on renewable energy sources to mine PoW coins, the damage to Bitcoin’s and other PoW coin’s reputations is done. The ‘greening’ of crypto mining will continue, but its detractors will remain.
Finally, it is often contended that blockchain and cryptocurrency foster criminal activity such as money laundering and tax evasion. This despite the fact that blockchain transactions are transparent and traceable and the fact that cold, hard fiat currencies are far and away the most popular form of money used by criminals around the globe.
The rapid emergence of cryptocurrency on the global financial stage was just the first step in blockchain technology becoming an integral part of business and our daily lives. As the technology advances, mining processes become more environmentally friendly, and more people become aware of its benefits, blockchain adoption will continue at an accelerating
