Your one-stop destination for blockchain news in the Middle East
advantages of blockchain

5 Disadvantages of Blockchain

Last Updated on February 24, 2024 by Hamza Khan

Blockchain has given us numerous opportunities necessary to maximize today’s digital world. However, despite the advantages of blockchain, there are disadvantages underlying the ecosystem. In this article, we will highlight the disadvantages of blockchain.

An overview of blockchain

Blockchain technology is a system that stores transactional records, known as “blocks,” in several databases, known as “chain,” in a network connected through peer-to-peer networks. It provides a method of recording information that makes it impossible or difficult for the system to be changed or hacked.

The blockchain features that make it so popular include its decentralized, immutable, and transparent nature. In addition, NFTs and cryptocurrencies like Bitcoin and Solana rely on blockchain to be secure. Blockchain technology also applies in several industries like healthcare, banking, government, etc.

Top 5 disadvantages of blockchain


One of the primary issues that make for a disadvantage of blockchain is scalability. For a system to have scalability, it can perform well under an increased workload. Typically, blockchain requires vast computing power to complete or verify a transaction. These transactions are conducted depending on the network congestion. Thus, the more people join the network, the greater it slows down completing a transaction.


Contrary to popular opinion, blockchain technology is not as cost-effective as it looks. It is expensive to invest in blockchain as you need to hire developers and a team of experts to pursue different aspects of the technology. Any organization willing to pursue a blockchain-based venture should also be ready to invest in maintenance costs. In addition, blockchain is costly in terms of being time-consuming. Miners spend a chunk of time verifying or even completing a transaction.


Blockchain is yet to mature as a relatively new, disruptive technology. In essence, people and organizations still approach the full-scale adoption of blockchain with wariness. Additionally, blockchain technology is still undergoing several regulatory procedures within countries. This technology requires a long time to mature for it to be widely accepted.


To summarize in a sentence, “blockchain can be hazardous to the environment.” The energy problem of blockchain is particularly a significant disadvantage of the technology, as blockchain relies on energy to be fully utilized. In mining cryptocurrencies like Bitcoin and Ethereum, miners must solve complex mathematical problems. They consume large amounts of energy in electrical power, which is not beneficial for the environment.


Although this is an advantage of blockchain, it also poses a disadvantage. Once data is imputed in a block, it becomes impossible to remove or make corrections where one is necessary. Similarly, it leaves privacy in pieces because when someone inputs information on the chain, such information cannot be removed when the person no longer wants it there.

Bottom line

There is no doubt that blockchain has its advantages. What is vital is that the disadvantages of blockchain don’t outweigh their advantages. In addition, some of these disadvantages have already been worked on to improve the technology. An example is the adoption of proof-of-stake rather than the proof-of-work method in some blockchain networks.

Related Posts