Security Concerns and Data Privacy

Although blockchain is secure, decentralized systems face their own security risks, such as vulnerabilities in smart contracts and susceptibility to Sybil or DDoS attacks. These issues introduce hesitation in sectors that require high-security standards, like finance and healthcare.

Its transparency can conflict with privacy requirements, especially in regulated industries that handle sensitive data. This makes the adoption of public blockchains challenging for enterprises needing to protect user data.