Challenges

Transaction Throughput: Bitcoin and Ethereum are examples of traditional blockchains that can process 3–7 and 15–30 transactions per second, respectively. Comparing this to central payment processors such as Visa, who are capable of processing hundreds of TPS, this is significantly less.

Network Congestion: An overabundance of demand may cause network congestion, which would slow down transactions and raise their costs.

Data Storage: The blockchain grows in size as more transactions are added, necessitating more storage space for nodes. This might cause centralization because only organizations with substantial storage budgets can support complete nodes.

Energy Consumption: The consensus algorithm used by Bitcoin and other cryptocurrencies, Proof of Work (PoW), uses a lot of energy, which raises environmental concerns.

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Blockchain

Challenges

Beginner 5 Hours

Transaction Throughput: Bitcoin and Ethereum are examples of traditional blockchains that can process 3–7 and 15–30 transactions per second, respectively. Comparing this to central payment processors such as Visa, who are capable of processing hundreds of TPS, this is significantly less.

Network Congestion: An overabundance of demand may cause network congestion, which would slow down transactions and raise their costs.

Data Storage: The blockchain grows in size as more transactions are added, necessitating more storage space for nodes. This might cause centralization because only organizations with substantial storage budgets can support complete nodes.

Energy Consumption: The consensus algorithm used by Bitcoin and other cryptocurrencies, Proof of Work (PoW), uses a lot of energy, which raises environmental concerns.

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