No single point of failure-reducing data duplication-provide single shared

view-reduce data reconciliation.

Limitations

The limitations include the following, and because of these limitations, the

scope for innovation exists:

Scalability: As their counterpart centralized systems, blockchains are

not scalable. A problem related to scalability issues with blockchain

networks is that the transactions are completely dependent on the

network congestion, meaning that when more nodes j oin the network,

there are more chances of it slowing down. The solution is to use

blockchain to store and access information and do the transactions off-

blockchain. There are also new ways of solving scalability that include

permissioned networks or the use of Corda, which is a different

architectural blockchain solution. All these solutions, however, are

still not at par with the centralized systems. Blockchain is not still

well-equipped for real-world applications still needs improvements

before it can be adopted in day-to-day life. People who see Bitcoin as

an effective currency are broken when they see that only seven

transactions can take place per second over this network. Hyperledger

can handle 10,000 Txn/ Sec; Visa can handle 24,000 Txn/ Sec for the

purpose of comparison. The practical use of blockchain is put in doubt

because of these scalability issues. The total number of transactions

occurring per second is limited as each participating node has to verify

a transaction in the network that can take up to several hours for a

bitcoin transaction to commit.

Performance: The technology’s performance limitations must be

considered by blockchain adopters. A blockchain has to go through

everything a normal database does, plus some extra steps when a

transaction is being processed. Every blockchain transaction must be

digitally signed, which puts the burden of signature verification. On

the other hand, the centralized databases need no such verification and

are thus faster. Compared to centralized networks, blockchains require

more computation. In a blockchain, the transactions are processed

independently by every node in the network, whereas the centralized

databases process transactions once or twice. As an example, Bitcoin