Deduplication, particularly block-level deduplication, requires significant processing power and memory to compare data blocks and manage metadata. This slows down write operations, especially in inline deduplication scenarios where the process occurs in real time. In high-performance environments, it creates noticeable latency. It's also worth mentioning that deduplication relies on hash algorithms to identify duplicate data blocks. In rare cases, different data blocks can generate the same hash (known as a hash collision), leading to potential data loss if the system mistakenly treats the new data as a duplicate.