Blockchain is generally regarded as one of the most revolutionary technologies, and it does have the world changing capacities in several ways! Still, it isn’t essentially the cure-all magic potion for all the issues prevailing in the universe. Scalability is definitely emerging as a critical challenge especially because of more uses, investors and startups involved. There are a few of the other prevalent problems that Blockchain technology is facing at the moment. And, scalability might be the most prominent one.
Blockchain’s scalability issue in regards to cryptocurrency
Bitcoin blocks were majorly hard-capped at 1MB. However, there is definitely the potential for any number of transactions made on every coin. And, later on these are recorded on every block infinite number of times. But, when the volume of transaction amplifies, the block sizes also increase. At the end of the day, they finally surpass the set limitation. Though, recently, Bitcoin has augmented its cap per-block. But, it is believed that blocks will still amplify with the utilization, and every will be requiring a lot more time for processing.
However, when the cryptocurrencies were not originally curated with the motive of use everywhere. Therefore, the need of scalability wasn’t considered important. And, systems were not prepared for the high number of transactions as well. However, lately, crypto fanatics thought that the technology is going to go a long way!
However, there is no connection between the number of transactions that are processed by something like Visa or Paypal and crypto. Visa is processing more than 24,000 payments per second. Whereas, crypto is surely lagging behind. This is where we can say that crypto is facing scalability issue. As, in order to grow further, they need to have the right offshore software development company to process a large number of transactions in less time.
Danger related to transactions!
The data linked to Blockchain transactions is piling up. And, the present system has started to sink under its own weight. With each transaction, Blockchain puts another block to its tree of transactions. And, the each block boosts the data as it also takes care the history of all the blocks involved, and that to before it. Therefore, just as more and more users and transactions are becoming a part of the current networks, as a result the present system is facing the danger of collapsing.
Scalability is not the only problem faced by Blockchain, here are some more:
Intricacy and difficulty in learning
Complexity is one of the major hindrance in the process of high adoption of Blockchain technology. Blockchain technology is not at all an easy technology to learn. Rather, you would be shocked to know that in order to become a master of Blockchain you would require a completely fresh vocabulary. Surprisingly enough, Blockchain has already made cryptography a lot more common.
However, the drawback is that this tremendously specialized field of technology is brimmed to the core with new vocab including a set of jargons. Though, now, there are a lot of glossaries and indexes which are easily accessible to enhance the learning. But, at the same time, it does require a lot of time and effort to be master. Thus, the complexity of the technology makes it a lot more difficult to learn, and people might even hesitate in learning it.
High set up cost
One of the major challenges that Blockchain is facing currently is the cost related to investment, especially for the environmental set up. Mostly, Blockchain depends heavily on encryption to make sure that the security is managed. Encryption is also needed to establish unanimity over a dispersed network. Therefore, a user needs to have the rights required to not only write to the chain but to also make sure that the intricate algorithms run. And, this huge quantity of technological power requires a larger amount of money.
Here, let’s take an example of Bitcoin. You would be surprised to know that energy used by approximately 159 countries was used as the technological or machine power needed to keep the Bitcoin network working. The humongous network was touted to enjoy the current market value equal to almost $170 billion.
High rate of Wastefulness
Some of the elements in Blockchain may be ignored and thus they might be termed as useless. Each Node runs efficiently in order to make sure that it is able to maintain the unanimity across Blockchain. This offers risky levels of mistake tolerance, and it also makes sure that the downtime is nil. Also, because of this, the data which is stored on Blockchain cannot be altered or modified in anyway. Also, the data is censorship-resistant.
But, this is not of any use, simply, because every Node replicates an activity to get to Consensus. And, on the road it wastes a lot of time, energy and electricity. Thus, the whole computation and the process because time consuming and also a little expensive. Hence, experts have to figure out better cost effective ways to manage this.
A lot of experts have started believing that Blockchain has the potential to compete with the top players in the market. However, Blockchain is one of most extremely creative innovation. The technology is one of the most progressive, but it is just that it has to be used in the appropriate manner. Misusing it, and not using it to the full potential might only lead to losses.
There is a constant debate regarding the potential and possible usefulness of the technology. However, to make sure that the technology is used appropriately we have to make it less expensive. It should be easy to set up and most importantly, the learning should become easy.
The experts should not be scared to pick up Blockchain as a subject to explore. At the same time, we also need more positive acceptance towards it. This can only happen if the technology is evolved properly, also, the road to learning, implementing and upgradation is made a lot easy than now.