Introduction
Sin the invention of Bitcoin, cryptocurrencies and blockchain as a whole have seen steady, sustained growth. Lots of industries have experienced blockchain disruption. Blockchain technology is now applied in various sectors such as education, banking, finance, helth, insurance, and a hot of others. The future seems bright blockchains as the sustained growth seen in recent times has given doubters a run for their money.
No matter the progress recorded so far in blockchain technology, some design bottlenecks have made it nearly impossible to reach its full potential and arrive at mass adoption. Here are 3 of these challenges:
1. Scalability The amount of transactions that blockchains can process in record time is very small when compared with traditional systems. Take for example VISA. This platform can process about 24,000 transactions per second. Compare this speed with say - Ethereum. Ethereum can Ethereum can handle approximately 20 transactions in a second. Bitcoin is even slower with about seven transactions processed per second. In a fast-paced and modern world like ours, blockchain technology is too slow to handle real-time data processing demands. This hinders the implementation of blockchain technology into main-stream sectors and industries.
2. Global standards: There are industry standards in every technology of invention today. But there seems to be no such available in blockchain technology. For example, there are many different concensus algothrims that are implemented across blockchains. Some use proof -of-stake. Others use proof-of-brain. While others still combine some algorithms. Taking the best of what is available in each. Because there are no universal standards of operation across blockchains, it becomes even more resource intensive. For example, new users must learn how each blockchain work and this makes mass adoption more difficult. The same goes with running and maintaining projects built across blockchains. Because there is no uniform standard of operation, costs are incurred as each system is unique.
3. Security: Blockchains are usually used to store valuables in form of digital properties. Because of frquent cases of hacking and system intrusions, its becoming increasing risky to store values on a blockchain. There has been cases where bitcoins worth millions or even billions of dollars were stolen as a result of hacking. Also, identity theft or loss of valuable human data has made various organizations think twice about using blockchains. No system perfect. however, blockchains must be made as secure as possible before we can hope to see them replace mainstream technologies.
Conclusion
We all hope to see the day blockchain technology will completely replace traditional systems. But before that can happen, the challenges listed above and many others must be fully addressed. I hope that happens in my lifetime because I love blockchain technology.
Look at d.tube and what happens there yesterday. Unfortunately, it's not that kind of technology I will bet my life on. https://steemit.com/blockchain/@koenau/d-tube-hacked-or-forever-gone
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Indeed, not all people hope to see the rise of crypto currencies. Warren Buffet called bitcoin "rat poison squared." Bill Gates is well against it, and congressman Brad Sherman is trying to outlaw it. Many perceive those who are already on top of the current system as being against a new one. But many view central banks as working against their citizens and think that separation of state and money is a good thing, but still a thing that those currently in control of central banks would be well against.
You have a point. However, We we have to wait and see what becomes of cryptocurrencies in the nearest future. As for crypto enthusiasts, they will as optimistic as ever. Whatever happens, it seems that cryptos will return some real-world application.