Scalability is more complicated
Posted: Mon Feb 03, 2025 4:25 am
Finally, achieving highly scalable blockchain-based systems is several orders of magnitude more complicated than achieving it in centralized systems. The reason is obvious: data needs to live in hundreds or thousands of places, instead of just one. The overhead of data transmission, verification, and storage is huge since they are generated for each copy of the database instead of just once in the case of centralized systems.
Of course, you can mitigate this by reducing the number of nodes. But then, why do you need a decentralized system? If scalability costs are an issue, it might be better to make a centralized system.
Centralization is easier
As you may have noticed from the points above, a centralized system is faster, cheaper, easier to maintain and control than a blockchain-based one. So why do people keep throwing around the word “blockchain” as if it will magically solve all problems?
The first thing to note is that many of the industries that are getting involved in blockchain albania consumer email list are seriously lagging behind in upgrading their IT infrastructure. For example, the healthcare sector uses notoriously poor systems. In the case of the financial sector, many of its mission-critical systems date back to the 1970s. Supply chain management software is difficult to use and manage. Most companies in these industries are reluctant to upgrade their systems because it involves risk. Blockchain is a way to “sell” these IT infrastructure upgrades by making them a little more palatable.
Of course, you can mitigate this by reducing the number of nodes. But then, why do you need a decentralized system? If scalability costs are an issue, it might be better to make a centralized system.
Centralization is easier
As you may have noticed from the points above, a centralized system is faster, cheaper, easier to maintain and control than a blockchain-based one. So why do people keep throwing around the word “blockchain” as if it will magically solve all problems?
The first thing to note is that many of the industries that are getting involved in blockchain albania consumer email list are seriously lagging behind in upgrading their IT infrastructure. For example, the healthcare sector uses notoriously poor systems. In the case of the financial sector, many of its mission-critical systems date back to the 1970s. Supply chain management software is difficult to use and manage. Most companies in these industries are reluctant to upgrade their systems because it involves risk. Blockchain is a way to “sell” these IT infrastructure upgrades by making them a little more palatable.