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What are the cons of using blockchain for businesses?


    Blockchain is gaining attention for its pivotal importance in the cryptocurrency universe. The technology maintains a decentralized environment and records every action in a particular cryptocurrency ecosystem. You can visit Tesler to get features like excellent customer support, live trading, and lesser trading fees while bitcoin trading.

    In such a vast and intricate process, it isn't easy to know whether every detail is accounted for and recorded. Blockchain was designed to solve this problem by providing a framework that is immutable, secure, universal, and distributed. 

    But before you put all your eggs in the blockchain basket, it's essential to know the cons of using this technology. In short, blockchain can ensure the security of sensitive data recorded on it. However, there are some challenges in security breaches. Blockchain undeniably provides a plethora of perks to an enterprise. Still, regarding its downside, blockchain has serious issues that need to be taken care of by the business owner before implementing it. 


    There are some problems decentralized ledger poses for businesses, such as data breaches or lack of regulation. Furthermore, there is no regulation on how long the information will be stored or who has access to it. These are some reasons an organization needs to have a plan for blockchain technology before implementing it. 

    Disadvantages of Blockchain:

    🚫 Speed and performance:

    When it comes to blockchain issues while implicating it into a business, the first and most serious challenge of using blockchain technology is its slow performance. It is because executing a transaction on the blockchain takes considerable time. The main reason behind this downside is that it needs validation from multiple parties before a transaction can be executed. In addition, it is done to ensure that no double spending or data manipulation can occur. 

    Blockchain becomes slower based on the number of people or entities who validate a particular transaction. As a result, it makes it difficult for an enterprise to use blockchain to conduct daily business activities quickly and efficiently. Due to such issues, there's a need for large companies with multiple departments to have plans in place before implementing any projects related to implementing blockchain. In addition, blockchain could perform faster because it has to perform numerous tasks, such as verifying signatures. The public ledger correspondingly heavily relies upon proof of work or proof of stakes, like the consensus mechanism. 

    🚫 High implementation cost:

    When compared with other database models, blockchain is way more expensive. Moreover, enterprises must have a foolproof plan to implicate this technology into their business model. Businesses are now making statements that blockchain is not as cheap as it sounds because the cost of implementing this technology is higher due to numerous reasons first being the lesser adoption rate and the second one being the need for more infrastructure to support this technology. Furthermore, blockchain technology is still in its early stage, and thus, skilled professionals cannot support it. It is the prime reason businesses are more focused on the research and development part to have a blockchain network. 

    The challenges mentioned above are just the tip of the iceberg for blockchain technology. Businesses need to be aware of what they will face when implementing this incredible technology into their business model. For example, some startups introduce a single globally accepted crypto asset to replace multiple tokens affiliated with its chain to attain a satisfactory level of efficiency, speed, and cost-effectiveness, as well as compliance with the regulation. In short, the cost of using bitcoin in a business is as high as installing a piece of new machinery to boost the productivity of business-related processes. 

    🚫 Data modification:

    The distributed ledger is devoid of allowance to forge the data present on it. Blockchain is expensive and time-consuming, as per some of the businesses that have tried to implement it. But one of the common issues that everyone has faced who has tried to implement blockchain technology is they cannot edit the data once they have recorded it on the public ledger. The two famous types of blockchain are permissionless and permissions, does not allow the data to be altered by any member of the blockchain.

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