Challenges facing the blockchain industry from "summary" of The Basics of Bitcoins and Blockchains by Antony Lewis
The blockchain industry faces several challenges that hinder its widespread adoption and growth. One of the main challenges is scalability, as current blockchain networks struggle to handle a large number of transactions simultaneously. This limitation is due to the consensus mechanism used in most blockchains, which requires all nodes to validate each transaction. As the network grows, this process becomes slower and more resource-intensive. Another major challenge is interoperability, as different blockchain platforms often use incompatible protocols and standards. This lack of standardization makes it difficult for different blockchains to communicate and transfer assets seamlessly. Without interoperability, the potential benefits of blockchain technology are limited, as users are confined to using a single blockchain network. Security is also a significant concern in the blockchain industry. While blockchain technology is touted for its security features, it is not immune to attacks and vulnerabilities. Smart contracts, in particular, have been targeted by hackers due to coding errors and loopholes. A...
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