What are the disadvantages of Blockchain?

More freedom comes with more responsibility – Although blockchain technology provides users within the blockchain ecosystem a high degree of freedom and control over their data, it also comes with great responsibility. When engaging with a blockchain you are entirely accountable for securing and keeping track of your account details (cryptographic keys). There is no, ‘I forgot my password’ button when engaging with a blockchain. When engaging with blockchain you are simply delegated a ‘seed’ which is like the master password to your wallet.

Fast pace and forever evolving – There are many different types of cryptocurrency projects on the market, and each project uses blockchain technology in a unique way. The difference between these projects and standard bricks and mortar projects, are these projects are building ecosystems with forever evolving technology. Keeping up to date with the progression of a single cryptocurrency project can be very time consuming, let alone trying to keep up to date with the entire blockchain industry. You can keep up to date with recent blockchain and mining movements here. 

Volatile – Due to the youthful state of this industry the value of cryptocurrency projects is very difficult to ascertain. Bitcoin is the oldest cryptocurrency in the blockchain industry, and even Bitcoin’s value can change by 10-20% in a few days. Although this presents favorable opportunities for day traders, it also creates substantial risk for businesses and consumers transacting with cryptocurrencies on a day to day basis.

Lack of ease of use – Storing, transacting and managing cryptocurrency can be a very difficult task even for people who have been in the industry for many years. There is no denying that ease of use is something that needs to be improved in the cryptocurrency industry, however there are also a lot of advantages gained for forgoing ease of use and being an early adopter, the industry has advanced significantly in the last 2 years and will continue to do so.