Various limitations in Bitcoin have also sparked some interest in altcoins. Some alternative coins were explicitly developed to address shortcomings in Bitcoin. The most prominent and widely discussed limitation is the lack of anonymity in Bitcoin. We will now discuss some of the limitations of Bitcoin.
Privacy and anonymity
As the blockchain is a public ledger of all transactions and is openly available, it becomes easy to analyze it. When combined with traffic analyses, transactions can be linked back to their source IP addresses, thus possibly revealing a transaction's originator. This is a big concern from a privacy point of view.
In the Bitcoin domain. it is a recommended and common practice to generate a new address for every transaction, which allows some level of unlinkability. However, this is not enough, and various techniques were developed and successfully used to trace the flow of transactions throughout the network and link them...