Disadvantages of Blockchain Technology: 10 Weakness and Limitations Uncovered

We have uncovered 10 disadvantages of blockchain technology for startups, SMEs and enterprises. Explore weaknesses and limitations here.
Disadvantages of Blockchain

Due to its emerging disruption and perceived impact, Blockchain has been highly focused on by technology-oriented researchers. 

However, within Information Management (IM) and Information Systems (IS), the momentum it has engendered is of little significance. 

Simply put, Blockchain technology is a digital database for recording encrypted blocks of information that can neither be changed nor hacked. 

The blockchain system keeps the information such as financial transactions or buy bitcoin and simultaneously shares it in a publicly accessible network. 

In other words, Blockchain refers to a digital ledger that stores information that is distributed up and down the entire network of computers on the Blockchain.

It helps to chain those blocks of data together to a single, chronological source of accurate data. With this, the data remains accessible and transparent to the public in real-time.

Nevertheless, like most technological advancements, Blockchain is not without disadvantages and limitations to what it provides. Luckily, most modern Big Data solution partners offer way better data management solutions. 

But, before we talk about blockchain alternatives, let’s first figure out what disadvantages and limitations blockchain technology has:

5 Disadvantages of Blockchain for Startups 

Blockchain technology often poses some significant hurdles for startups, so you must learn about its disadvantages before you choose to implement it. 

Let’s dive in to learn about five disadvantages of Blockchain for startups:

  1. Difficulty with Updates

When any part of nodes (devices that verify each set of network transactions known as blocks) does not accept amendments, the application needs to be updated on each node of Peer to Peer network aka, P2P network. 

These consist of a batch of devices (or nodes) that collectively store and share files. Each node works as a peer. If the P2P network is too extensive, the updates become a big challenge

  1. No Alterations in the Entered Data 

When humans are entering data to Blockchain, the data is more prone to errors. 

However, Blockchain allows no changes once data is entered into it, so the information added must be 100% accurate as even minor human errors become permanent, which may lead to significant issues due to inaccurate data later on.

  1. Difficulty of Development

Most startups need to implement some complex protocols for achieving consensus and scaling off from the beginning. 

You cannot hastily implement an idea without deciding the features you need with the hope of expanding the application later. 

Once it is implemented, it is unlikely to add new features to it without the redeployment of the entire network, as blockchains cannot be edited.

  1. Technology for the Geeks

Startups might face challenges when using blockchain technology since it often requires users to be tech-savvy. Even if you are getting started, you still need to be familiar with technology to store crypto, trade it, make crypto transactions, and much more.

  1. Sturdy Network for Dedicated Purposes

By nature, Blockchain uses strict logic, so it does not allow redesign without losing benefits, leading to considerable business alterations. If you do not make those changes, a blockchain solution will not accept you.

5 Blockchain Weaknesses and Limitations for SMEs and Enterprise

  1. Each node in the P2P network maintains a comprehensive history of the network’s transaction data. It becomes a privacy issue when any user who has access to the public network can access this data.
  1. The computational costs for the underlying processing of the Blockchain are expensive. To ensure that a user is authorized to write to the chain (computer files), complex algorithms need to run, which, in turn, requires a tremendous amount of computing power that comes at a considerably high cost. 
  1. For permission and execution of transactions, blockchain technology uses public-key encryption. It also requires using a private key. In case you lose or publish your private key, the system has no other security mechanism to ensure additional protection of your information.
  1. It has immutable append, a characteristic of Blockchain to ensure the integrity of transactions. However, it acts as a barrier when you need some changes to transactions.
  1. For some enterprises, the distributed architecture of Blockchain is a significant limitation for the overall governance and control of data. They will require the aid of an IT team.

Folio3 is Your Best Big Data Tech Partner 

Although essential for businesses, Blockchains pose many potential challenges. However, Big Data solutions crunch the complex data and help you manage it well.

Big Data is the management of big blocks of data that are otherwise too large and complex for traditional data processing systems to analyze and extract. 

Since this technology has a far-reaching impact on the way you approach business processes and serve your customers, Folio3 is all set to help you as your Big Data solutions partner.

For getting to know us, below learn more about us and what we offer:

  • To get your company a step into the future, we provide a personalized and comprehensive toolkit of big data analytics for analyzing data and converting it to usable insight. 
  • We help you with tracking and assessing the performance of specific business processes. By deriving quantifiable measures from big data, we assist you in understanding and managing your enterprise metrics. 
  • We accommodate big data solutions in various industries, including but not limited to professional services, healthcare, public sector services, hospitality, retail, farming, and agriculture.
  • Having worked with a wide range of emerging tools and technologies, including Informatica, Pentaho, SAP Business Objects, Oracle Business Intelligence, and IBM Cognos, we hold the right to boast extensive experience and expertise in Big Data consulting services.


Blockchain has been benefiting a wide range of enterprises; however, its high costs and lack of privacy with some other limitations fail to make it a significant choice.

These days, enterprises are increasingly turning towards Big Data solutions that make data management more accessible than ever. 

Being a Big Data consulting services team, we help you set up and maintain solutions for Big Data management on any platform based on your needs. 

We also offer a free 1-hour consultancy to help you analyze your project requirements with our team of experts.

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