While blockchains are a very intriguing technology, they still have their limitations. As blockchains are a relatively new technology, there is a lot of uncertainty surrounding them. Regulators have yet to clarify the status of cryptocurrencies and are just learning about blockchain technology. Additionally, blockchains have not reached a sufficient level of scalability. Scalability describes the ability for a network to meet increased, real-world demand by being able to process transactions at a fast enough pace as to not create a backlog.
There are many projects working to solve the scalability issue, and many are examining different approaches to address the technological limitations of a blockchain. Centralized services such as Visa can process thousands of transactions a second. It is currently very difficult for a decentralized network to achieve this type of efficiency.
Blockchain 101 – Lesson 17
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