What are the limitations of using blockchain for Process Automation security?

1 Scalability issues

One of the main drawbacks of blockchain is its limited scalability, or the ability to handle large volumes of transactions and data. Blockchain relies on a network of nodes that validate and store transactions in blocks, which are linked together by cryptographic hashes. This process requires a lot of computational power and storage space, which can slow down the network and increase the costs. Moreover, some blockchain platforms have a fixed block size and frequency, which limits the number of transactions that can be processed per unit of time. This can pose a problem for Process Automation, which often involves complex and dynamic workflows that generate and consume a lot of data.

3 Governance dilemmas

A third limitation of blockchain is its complex and ambiguous governance, or the rules and mechanisms that define how the network operates and evolves. Blockchain is often based on the principle of decentralization, which means that no single entity or authority controls the network, but rather the participants collectively agree on the rules and decisions. However, this also raises some challenges, such as how to ensure the quality and validity of the data, how to resolve conflicts and disputes, how to update and upgrade the network, and how to balance the interests and incentives of different actors. These issues can affect the security and reliability of the network, and the accountability and transparency of the processes.

4 Regulatory uncertainties

A fourth limitation of blockchain is its uncertain and evolving regulatory environment, or the laws and policies that apply to the network and its participants. Blockchain is a relatively new and disruptive technology, which means that it may not fit well with the existing legal and regulatory frameworks that govern Process Automation. For instance, some jurisdictions may have different or conflicting rules on data protection, privacy, identity, ownership, taxation, auditing, compliance, and liability. This can create legal risks and complexities for the users and providers of blockchain-based Process Automation solutions, and hamper their adoption and innovation.

5 Human factors

A fifth limitation of blockchain is its dependence on human factors, or the behaviors and attitudes of the people who use and interact with the network. Blockchain is not a foolproof or flawless technology, but a tool that can be used for good or evil, depending on the intentions and actions of the users. For example, some users may try to manipulate or attack the network, or exploit its vulnerabilities and loopholes. Some users may also lack the skills or awareness to use the network properly, or to protect their data and assets. These human factors can compromise the security and performance of the network, and the trust and satisfaction of the users.

6 How to overcome or mitigate the limitations

Despite its limitations, blockchain still offers many advantages for Process Automation security, such as immutability, transparency, traceability, and automation. To minimize the limitations, some possible solutions include choosing the right platform and architecture that suits the needs and goals of the Process Automation project, establishing governance rules and mechanisms that ensure data quality and validity, following relevant legal frameworks that protect user rights and obligations, and educating users on how to use and interact with the network. These measures can help create a culture of trust and collaboration.