All what you need to know about Blockchain
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Blockchain technology is identified to be the ingenious invention by a group of people which has evolved with time.
The blockchain has allowed for the distribution of digital information rather than copied thus leading to the creation of the backbone of a new type of internet. The technology is devised for the digital currency bitcoin. The technology is identified to be an incorruptible digital ledger for carrying out the economic transactions.
The technology is programmed to virtually record everything of value and not just the financial transactions (Swan, 2015). The blockchain technology development has been mainly orchestrated in the open source environment. The technology is birthed in the open source where the original blockchain system is identified as Bitcoin.
The application of the blockchain has mainly found its way in the financial services. It is best for the developer to watch the blockchain solutions development on an open source considering the current stage of the technology’s evolution. The Blockchain technology has the better chances of achieving, the more rigorous standardizations and protocols as time goes by through the collaboration in an open source. Such would allow for the easier and better blockchain development. The core code supporting the blockchain technology where it was identified as Bitcoin was published in the year 2009 (Tapscott & Tapscott, 2016).
Since then there has been some significant growth in a number of the projects that are related to the technology. The rapid growth of content produced for the development of the blockchain technologies matches the growth in the projects.
The Blockchain evolution is mainly about the community where it is defined as a group of developers sharing similar interests where they are focused on the improvement of the existing content. Through the blockchain technology, it is possible for the many people to write the entries into the information records. In this case, the community of the users can control the way of updating and amending the record information. Regardless of the future of the Bitcoin which involves the Blockchain technology, there is some agreement that the technology would result in some impacts on development and economic exchange (Swan, 2015). In future, the blockchain would greatly impact the payment industry positively. However, there are numerous challenges currently slowing the process of development of the blockchain technology. There are several challenges that need to be effected before the full implementation of blockchain-based development solutions. These issues involve governance, operational resiliency, and data privacy.
Problems in the Blockchain Industry
There are various problems that are experienced in blockchain industry which might affect the development and growth of the industry. One of the issues pertains volatility where it can be brought by factors such as the high profile losses in the bitcoin.
These losses create a problem through the reduction of the overall float of bitcoin thus producing a potential lift on the value of the remaining bitcoin. Such situation is caused by the increased scarcity. There is volatility in the industry where the bad press has played a major role in hampering the rate of adoption. The holders of large proportions of the total outstanding float of the currency have greatly driven the volatility of the bitcoin. Another problem of blockchain is the resources that are used in mining the bitcoins. The giant mining companies have taken the initiative of building next to a power station since much of the electricity is consumed in the process (Back et al, 2014). There is also the expensive custom mining equipment during the process thus making it a challenge and problem of blockchain technology.
The various payment methods or modes have failed to recognize the use of the bitcoins which is identified as a problem and a big blow to the blockchain technology.
The transaction process for the bitcoin currency used in blockchain is too slow while it is unstable making it impossible for it to be used for real payments. Such reasons put doubt to the development and future of blockchain and the bitcoin currency. The unavoidable security flaw, the huge transaction costs and the complexity due to the entire new vocabulary are also some of the limitations and problems in the blockchain industry (Vukolic, 2015).
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