Permissionless Blockchain: It's Dis-advantages In The Blockchain Community

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Good morning all, Today I wish to talk about a very interesting topic with you.

This topic I want to discuss with you is a very important and interesting one and Initially, I do not have full understanding on it's concepts, not until I made my personal research about it.

Permissionless blockchain is not a new topic to us, as i shared my research with you all on its advantages in the crypto community.

Today, let's check out on some of it's dis-advantages.

• CHALLENGE OF ENERGY CONSUMPTION

Cryptocurrencies like Bitcoin has permissionless block chain system that operates and is based on a proof of work consensus algorithm and as a result when this cryptocurrency (Bitcoin) is being mined a huge amount of computational power is required hence a large and substantial amount of energy is consumed.

The amount of electricity consumed and carbon emitted as a result is enough to raise alarm and cause severe concerns on the adverse effect it might be having on the environment and possible repercussions it have have on the sustainability.

This serve as a disadvantage because when users starts to question the sustainability of the permissionless block chain it would prevent growth, it would be like living in a rented apartment where you have been given a quit notice you won't be making any changes or repairs to the apartment because you know you will definitely be living and it will be a waste.

• REGULATORY CHALLENGES

Permissionless block chain systems operates without any central authority it was created in a way that the central authorities will have no control over it and as such these authorities and governmental bodies still try to regulate and set strict guidelines for the system.

The permissionless block chain system does not operate on already established guidelines or like the traditional financial system, it regulations and guidelines are not fixed and as such hinders other institutions and industries from easily adopting it.

• CHALLENGE OF SCALABILITY

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Basically scalability in terms of permissionless block chain technology refers to the ability of the the block chain network and systems to efficiently adapt to carrying out more transactions without affecting or compromising the efficiency or functionality.

Lack of scalability is one of the setbacks and disadvantages of permissionless block chain we notice this in cryptocurrencies like Bitcoin and Ethereum .

As the number of transactions increase there is a decrease in the efficiency of the network to process these transactions and thus causing increment of transaction fees and decrease in transaction time.

This disadvantage reduces the growth and spread of the permissionless block chain network to the rest of the population.

• SECURITY CHALLENGES.

The permissionless block chain is decentralized, decentralized in the sense that it does not require a central authority and it ledger are distributed across a network of nodes.

Because of its decentralized nature transactions of the block chain network are carried out and validate through a consensus mechanism like the proof of work or proof of stake.

The permissionless blockchain being decentralized is supposed to earn the trust of its users but regardless of this it has some failings when it comes to security.

The permissionless block chain system is prone to threats of double spending not to mention the fifty one percent threat of attack it face from cryptocurrency miners coming to gather to gain and control half of the system and the ability to manipulate and falsify transactions.

• LACK OF CENTRAL AUTHORITY

As a result of the decentralized nature and structure of the permissionless block chain system it does not require or have a central authority which governs or controls it.

One might wonder how this is a bad thing or disadvantage and here is how because of the lack of governance or a central authority the decision making process suffers.

If there is need for a protocol change or regulation change without a central authority the decision process will just be like a long unending, unchanging process.

• LACK OF OPERATIONAL KNOW HOW

Most transactions carried out using the permissionless block chain is not common knowledge to all and not all can take part or participate in these said transactions.

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Unlike the traditional financial system which is quit easy to use I have friends I had to tutor a lot of my friends on this platform how to carry out transactions on their Binance app even I myself was also taught.

So yes the lack of the common knowledge to operate and carry out transactions on the permissionless block chain system.

We cannot deny the fact that permissionless blockchain brings about numerous advantages to the crypto community, but we must also acknowledge some of it's dis-advantages.

Explained above are some of it's dis-advantages in the crypto ecosystem and as we proceed, we shall learn more