It’s rather unfortunate how so much of the funding around blockchain is pushed into Initial Coin Offerings (ICOs.) While there are problems with the blockchain technology that need immediate attention and developers need all the funds they can have to fix the flaws within this technology.
Wait, hold up! There are problems with the blockchain technology???? Yes, we hate to break it to you.
But, blockchain has its flaws. If it’s coming as a surprise to you, we don’t blame you. Blockchain is hip and trending. Everyone is into it! But, only few are aware it’s not as perfect as it seems.
Flaw 1: Uh-oh! Formal Contract Verification Missing
The formal verification of smart contracts is a problem which is not solved. It’s actually a huge problem if you come to look at it. But, you must be wondering why is formal verification for programs encoded within smart contracts necessary?
You see, smart contracts are immutable. That means you can’t fix or update them once they have been deployed into the main network. This means we have to get everything right to the tee. And only then we can deploy and use the smart contracts in real world applications. Since, smart contracts can be accessed by the public and anyone can view whatever is stored within them, anyone can also call into the public methods of smart contracts as well. Sure, there is transparency and openness. But, because of this smart contracts also become yummy targets for hackers.
The truth is, writing trustworthy smart contracts that are completely bug free is extremely difficult. Regardless of the fact how careful you are.
Flaw 2: Constraints
We’re talking about storage constraints here. Since, application require space and when they get built on a public blockchain storage space for financial information, user identities will be taken up. What seems to be the problem if you’re wondering? Well you see if information is stored on a public blockchain it will be story by every node in the network. Remember the data keeps adding on and it is also immutable? The fact that every node processes all the data the process keeps slowing down.
This imposes huge costs on a decentralized network where every node has to keep storing more and more data forever. Which is why it’s a huge problem for any application that gets built on the blockchain.
Flaw 3: Unmanageable Consensus Mechanisms
Blockchains are “trustless”. Users don’t have to trust anyone else with their transactions. Not needing to trust anyone else affords users attractive properties such as autonomy, censorship resistance, authenticity, and permissionless innovation.
Flaw 3: Lack Of Governance
We’re fully aware that a decentralized blockchain doesn’t have a central authority. It’s a dream come true actually. It’s a completely open, permissionless and trust-less system. But, this also means it doesn’t have a safe upgrade path for the protocol and also no one is responsible maintaining and setting standards.
Sure, the blockchain technology should be as decentralized as possible. But, the fact remains that some organization amid the developers and other people in the ecosystem should agree upon new upgrades, standards and features. There needs to be a better way. Otherwise, there will only be debacles!
Blockchain has its flaws. These problems need solution to make sure that the blockchain technology can reach its full potential. Do you think there are possible solutions for these problems? Let us know below!