What is a significant challenge associated with blockchain technology?

Scalability issues and energy consumption represent significant challenges in the blockchain technology landscape. Scalability refers to the capability of a blockchain network to handle an increasing number of transactions efficiently. As the number of users and transaction volumes increase, many blockchains struggle to maintain speed and efficiency. For instance, networks like Bitcoin and Ethereum have experienced congestion and delays during peak usage, leading to longer transaction times and higher fees.

Energy consumption is another critical concern, especially for proof-of-work blockchains that require extensive computational power to validate transactions and maintain network security. The environmental impact of this energy consumption has garnered significant attention. As a result, many in the industry are exploring alternative consensus mechanisms, such as proof-of-stake, to address these issues while seeking a balance between security, decentralization, and energy efficiency.

The other options, while valid concerns in certain contexts, do not encapsulate the broader, ongoing challenges posed by scalability and energy consumption, which directly impact the operational viability and sustainability of blockchain technology at scale.