Overview
Blockchain development introduces unique technical, regulatory, and usability challenges. From smart contract vulnerabilities to scalability and compliance, each layer of the stack demands rigorous planning and execution.
Common Challenges
- Security Risks: Smart contracts are immutable and prone to bugs
- Scalability Limits: High transaction fees and limited throughput on Layer 1 chains
- Regulatory Uncertainty: Varying laws across jurisdictions (e.g., KYC, AML)
- User Experience: Complex wallet flows and on-chain delays
- Data Privacy: Storing sensitive data on public ledgers requires off-chain strategies
Mitigation Strategies
- Conduct smart contract audits and use formal verification tools
- Use Layer 2 solutions (e.g., Optimism, Arbitrum) or alternative chains
- Engage legal counsel early in development
- Abstract blockchain complexity from users via intuitive interfaces
- Leverage hybrid architectures for sensitive data handling
Related Context
