Everyone is crazy about bitcoin and the technology behind it, i.e., blockchain. You must all be aware of the benefits that bitcoin and blockchain offer, but have you ever heard about their detriments? If you have only heard the plus points, it is crucial to be aware of the negative points. Blockchain is an incredible technology, and every enterprise uses it; and in fact, all cryptocurrencies use blockchain as their base. Still, few things might disappoint you. You can make an auto profit by visiting its site or downloading the app.
This article will discuss blockchain technology that is the base of bitcoin, a digital currency. However, before moving on to the disadvantages of blockchain, let us talk or learn about bitcoin in general.
Bitcoin – A Digital Currency
Bitcoin is a virtual digital currency that is known to be revolutionary. It was developed to provide users with a new medium of exchange that works in a decentralized manner, but it has also been used widely for criminal activities. If we see technically, bitcoin is a breakthrough. The built-in ideas and components of the bitcoin network aren’t new-fangled as they were famous in the market before 2009. But the founder of bitcoin, Satoshi Nakamoto, managed to make it work in 2009 and launched it in the market.
In 2009, it was launched, and after nine years, a significant vulnerability of the bitcoin network was found in its implementation. Bitcoin received appreciation as only one vulnerability got found in all these years. The founder of bitcoin, Satoshi, faced the major challenge of making a currency work without any intermediary or central system. But he managed to create electronic money, but Satoshi’s decisions while developing bitcoin were destructive.
Though there are many disadvantages to the blockchain, it is a helpful technology with many advantages. It is a revolutionary technology, and many companies and businesses are using it. Therefore, it is crucial to know the downsides of technology as well as its upsides. Let’s discuss the myths of bitcoin’s blockchain in this article.
Myths about Blockchain technology
- Blockchain is a gigantic distributed computer.
There are millions of computers in blockchain, but all the computers do the same thing: verifying bitcoin transactions following the rules, recording similar things in the ledger, and storing the history of transactions. There is no mutual assistance, no paralleling between the computers that maintain blockchain ledger. No duplication takes place, and it is just the opposite of practical technology.
- Blockchain will never end.
The bitcoin network client tends to store the transaction history, and the record has become 100GB already. Commonly, this is the total capacity of a laptop or even a smartphone. As time passed, more transactions took place on the bitcoin network and got processed, the size of the blockchain grew. But it is crucial to understand that blockchain growth isn’t as fast as other altcoins networks. Therefore, the life span of blockchain is inadequate depending on the circumstances.
Bitcoin enthusiasts have to download everything before using it. You cannot make or receive bitcoin payment until and unless the downloading process gets completed. It is one of the main reasons why bitcoin enthusiasts suffer as they have to download everything.
- Blockchain is scalable and effective. It will make conventional money disappear.
The capability of each crypto network is different. For example, the bitcoin network can process only seven transactions every second for all worldwide users. Along with this, bitcoin transactions get recorded by miners once every 10 minutes. So, if you try to buy a small thing like a snack, you have to wait in line at the store for hours to get your transaction completed.
On the other hand, Visa processes thousands of transactions every second. It shows a clear difference between which is effective and scalable, and which is not. It is impossible to make conventional money disappear.
- Miners offer network security.
You must have heard about massive mining farms and farms using power stations to mine bitcoins. Miners use a lot of electricity every 10 minutes to mine bitcoins, which is harmful to the environment. In addition, miners use electricity and expensive mining equipment to mine bitcoin and don’t offer any security to the network.