Libra Association Is Requesting A Swiss Payments License

Blockchain technology has its limitations which might be inappropriate for a lot of digital interactions.

First, blockchains are not resistant to bad actors; on the contrary, they react to attacks and become stronger. If the blockchain is not a great grid of nodes widely spread, it is more difficult to get the full benefit. As long as users hold on to their pseudonym, it’s all going to be ok. But if somebody makes a connection between the pseudonym and the individual the secret is out in the open. There was a case where law enforcement agencies identified Bitcoin users during investigations. This is clearly breaking the entire point of a blockchain’s privacy.

If you want to use the blockchain as a database, every information that you put in there has to be of very high quality. Not every data that you put on a blockchain can be trustworthy.  This is why it has to be watched carefully and put in place accurately.

Another problem with the blockchain technology is politics. Miners eventually do form a type of governance model so this may lead to public disagreements between certain community sectors.

Last, when we talk about scalability, we need to know that every blockchain consensus protocol has some limitations: all of the nodes that are participating in the network must process each and every transaction. A decentralized consensus mechanism offers us all the benefits of the blockchain we want. But, decentralized mechanisms limit the number of all transactions the blockchain can process to the limit of a single participating node on the network. This means that the blockchain can process only a limited number of transactions.