Definition ∞ Protocol limitations are inherent constraints or design choices within a blockchain or decentralized application that restrict its capabilities or performance. These limitations can stem from various factors, such as throughput capacity, transaction finality, storage costs, or the computational complexity of smart contracts. They represent trade-offs made during a protocol’s design, often prioritizing security or decentralization over scalability or speed. Understanding these constraints is vital for assessing a protocol’s suitability for specific use cases and its potential for future growth.
Context ∞ Protocol limitations are a persistent area of research and development in the blockchain space, with many projects actively working to overcome existing bottlenecks. A key discussion revolves around the “blockchain trilemma” and how different protocols balance decentralization, security, and scalability. Future innovations will likely focus on layer-2 scaling solutions, novel consensus mechanisms, and more efficient data structures to push the boundaries of what protocols can achieve.