Issues in existing blockchain ?

Issues in existing blockchain

There are some Issues in existing blockchain which is discussed in detail.

1. Blockchain has natural costs

At least, the way it is used today, it works. Blockchain relies on encryption to provide its security and establish network deployment agreement. This means that, in order to “verify” that a user has permission to write a series, complex algorithms must be used, which also require large amounts of computer power. Yes, this comes at a cost. Taking the well-known and widely used blockchain – Bitcoin – last year was said to be the computing power needed to keep the network running costly as it was used by 159 nations around the world.

Yes, Bitcoin Blockchain is a very important network – powerful in the current market at the time of writing more than $ 170 billion – so sophisticated security and computer security are essential. Small blockchains – such as those that an organization can use internally to securely monitor and record business activity – can consume a portion of that. However, it is an important consideration and the environmental impact and energy costs cannot be ignored.

2. Lack of control creates a dangerous situation

Also, this is a big problem with Bitcoin or other value-based blockchain networks. But the fact is, as many investors in Bitcoin or other cryptocurrencies for the first time in the last few months have received their costs, it is a very flexible area. Due to the lack of regulatory oversight, scams and market fraud are common. Among the top cases is Oncecoin – recently introduced as a ponzi scheme that is believed to rob millions of investors who believed it was too early to get into what would bethe  “next Bitcoin”. Like many technological centers in recent years, legislatures have largely failed to keep up with the founders (or fraudsters), leading to a rich selection of those who want to exploit the “FOMO” – “fear of failure”.

Even if, as an investor speculating on cryptocurrencies, you choose to stick to comparatively established currencies like Bitcoin, Litecoin or Ether, there is always the possibility that the exchange or online wallet where you keep your coins will be hacked, or closed. governments because of shady practices, or simply run away with your coins. Also, this is a result of the lack of direct coordination across the sector.

 

3. Its complexity means that end users find it difficult to appreciate the benefits

While its potentially revolutionary plans are evident when one makes an effort to understand the principles of encryption and distribution of books behind the blockchain, it takes a while, and good reading, before the “man on the street” sees what makes blockchains. which can be very helpful. Technology experts talk about changing the services of middle-class people often provided by the financial services industry – like clearing payments and preventing fraud. But in terms of many, banks offer this service sufficiently, at a low cost to the end user.

It is not uncommon for the first blockchain – Bitcoin – to enter public awareness soon after the 2008 financial crisis, when the media and public opinion showed widespread dissatisfaction and growing distrust of established financial institutions and tools. Ten years later and without the apparent risk of a rapid recurrence, is there still a desire to dismantle financial resources and rebuild them from the beginning? Well, the previous problem was unexpected, and who knows what’s nearby. International events may stimulate the desire for change, but until they do, blockchain may remain a major issue for many.

4. Blockchains can be slow and difficult

Once again and because of their complexity and encrypted, distributed nature, blockchain transactions can take time to process, certainly compared to “traditional” payment systems such as cash or debit cards. Bitcoin transactions can take a few hours to complete, which means that there are natural problems with the idea that you will be able to use them to pay for a cup of coffee during your lunch hour unless the seller is willing to take part in the risk. . And was that not what the “infidelity” of the blockchains was expected to remove from the equation?

In theory, the principle extends to blockchain networks used for something other than the value store, for example, logging transactions or interactions with the IoT environment. These chains – just computer files, after all – have slower and uncontrollable power as they grow in size, and the number of computers accessing and writing on the network is growing. Hopefully, this is a problem that will be solved with advances in engineering and processing speed, but for now, it is still a problem, anyway.

5. “Establishment” has an interest given to blockchain failure

Let’s face it – despite the overwhelming interest in adopting blockchain technology in the established financial industry, the essence behind so much has been said that “it would be better if it disappeared quietly.”

Banks make huge profits by playing the role of the average person, and because the costs are spread across millions of their customers, end users often pay very little individually.

Back in 2015 one former Barclays manager described the interest and obvious enthusiasm of his department as “critical” – saying that this was due to a desire to control or restrict the use of emerging technologies.

Banks have great potential to motivate governments and legislators. It can be assumed that if they decide that it is in their best interests, the established financial services industry may, if it does not kill the blockchain, significantly reduce its use and limit its availability.

In my view, however, while these five issues may be significant barriers, it is likely that blockchain technology will emerge in the coming years. After all, technological advances, like nature, have a way of finding a way around the artificially constructed barriers.

TechPay blockchain financial technology

Because consumers perform functions on a public book, the TechPay is a Layer-1 blockchain that make the financial system more accessible. This openness can expose inefficiencies such as fraud, which allows financial institutions to solve problems and reduce risk.

 

Related Terms

Important Blockchain Features Right Now

You might be curious why Blockchain has become so common recently. We’ve compiled a list of the most popular Blockchain features.More

 

Leave a Reply