Centher Academy

What are the limitations and scalability challenges of blockchain networks, and how can they be overcome?


Blockchain networks have gained significant attention and adoption, but they do come with certain limitations and scalability challenges. Here are some of the key limitations and potential solutions to address them:


Limitation: Blockchain networks, especially public ones like Bitcoin and Ethereum, can have scalability issues. As more users join the network, the transaction processing speed can slow down.

Solution: To overcome this, several approaches are being explored, including:

  • Layer 2 solutions: These are secondary protocols built on top of the main blockchain to process transactions more quickly and reduce the load on the main chain. Examples include Lightning Network for Bitcoin and Rollups for Ethereum.
  • Sharding: This involves breaking the blockchain into smaller, interconnected parts (shards), with each shard processing a subset of transactions independently, thereby increasing throughput.
  • Sidechains: Sidechains allow assets to be transferred from the main chain to a separate blockchain with its consensus rules, enabling faster and more efficient transactions.
  • Improved consensus algorithms: Some blockchains are exploring more efficient consensus algorithms, like Proof of Stake (PoS), to increase scalability.
Energy Consumption

Limitation: Some blockchain networks, particularly Bitcoin and Ethereum, are criticized for their high energy consumption due to Proof of Work (PoW) consensus algorithms.

Solution: Transitioning to more eco-friendly consensus mechanisms like Proof of Stake (PoS) or delegated Proof of Stake (DPoS) can significantly reduce energy consumption. Ethereum, for instance, is working on transitioning from PoW to PoS through the Ethereum 2.0 upgrade.


Limitation: Different blockchain networks often struggle to communicate and transfer assets between each other.

Solution: RCross-chain interoperability protocols, such as Centher, Polkadot and Cosmos, are being developed to facilitate communication and asset transfer between different blockchains. These protocols aim to create a network of interconnected chains, reducing silos.

Security and Consensus

Limitation: Achieving consensus and ensuring security on a blockchain is resource-intensive.

Solution: Research into consensus algorithms and cryptographic techniques continues to improve security while minimizing resource usage. The implementation of formal verification methods can also enhance smart contract security.

Regulatory and Legal Challenges

Limitation: Blockchain faces regulatory hurdles and legal uncertainties in many jurisdictions.

Solution: Engaging with regulators, developing clear compliance standards, and working on legal frameworks for blockchain can help overcome these challenges and foster mainstream adoption.


Limitation: Blockchain technology can be complex and challenging for non-technical users to understand and use.

Solution: Improving user interfaces, educational resources, and creating user-friendly wallets and applications can make blockchain technology more accessible to a wider audience.

Data Privacy and Security

Limitation: Public blockchains often have limited data privacy and security, which may not be suitable for all use cases.

Solution: Private and consortium blockchains are designed to address data privacy concerns by restricting access to authorized participants. Additionally, zero-knowledge proofs and other cryptographic techniques can be employed to enhance data privacy on public blockchains.

It's important to note that not all blockchains face the same limitations, and the solutions may vary based on the specific use case and blockchain technology. Scalability, energy efficiency, and security are among the most pressing challenges that blockchain developers are actively working to overcome.