If you investigate closer, you will find the usage of blockchain innovations in countless industries. Extending from inventory network to money related administrations, blockchain technology has surpassed every major early application tools.
While there is no uncertainty that the distributed ledger technology is one of the best developments of recent times, it is observed that blockchain technology will take a significant measure of time for its wide adoption. This is on the grounds that there still exist few difficulties related with blockchain adoption that must be mitigated on priory note.
In this blog, the reader will be introduced to those common blockchain problems that should be tended before the wider adoption of blockchain in the different industry sector.
Scalability in other words adaptability is one major concern that Blockchains are experiencing today. The distributed ledger technology faces difficulty in adequately supporting a substantial number of clients on the system. Both Bitcoin and Ethereum, the main blockchain systems, have encountered moderated exchange speeds and higher expenses charged per exchange because of the generous increment in users. It is found that Bitcoin processes only about 4.6 transactions per second, whereas Visa platform processes about 1,700 transactions per second.
While this has prompted the tech giants to indulge themselves in the in-depth research, exploring how to help both these systems and blockchains in general.
However, the scalability concerns have adequately tended with the implementation of EOS blockchain. Today EOS blockchain is considered to be high –end performing blockchain among other blockchains. The delegated Proof of State mechanism (dDPoS) an alternative of early Proof of Stake(PoS) have triggered the EOS blockchain to process more number of transactions per second. Today, EOS blockchain claims about achieving more than 10,000 transactions per second.
2. Increased Criminal Associations
Right from the inception, bitcoin has been in news for the shadowy dealings of the underground market and the dark web. According to varied researches conducted, there exists about one-half Bitcoin transactions and one–a quarter of Bitcoin users, who are indulged in illicit transactions or illegal activities. About $72 billion unlawful activity is recorded every year in the Bitcoin blockchain platform.
In a paper titled 'An Overview on the Security of Blockchain Frameworks,' a group of scientists found that digital forms of money are utilized by culprits to encourage the buying of confined materials on online commercial centers. Also in some cases, the cryptocurrency is widely used as a device for tax evasion or a method for ransomware. For this reason, among a major public, the image of blockchain innovation keeps associated with the shadowy affiliation.
3. Immune to threats
Security consideration comes all the above, especially in the programming sector and in blockchain explicitly. No matter what, once the security is challenged in programming it brings down every other credit in the software.
The blockchain is known for its decentralized and trustless exchanges of work. However numerous blockchain security vulnerabilities are challenged every now and then. Security is said to affect both the operational stage and technical architecture, raising many eyebrows over blockchain hacking risks.
With the introduction of Ethereum smart contract, the programming specialists are enabled to deploy their own decentralized applications (DApps) for varied use cases. While bitcoin is the major cryptocurrency in the market, the Ethereum blockchain enables the clients to exchange the capability of the blockchain to true applications. However, in this case, the study conducted on the same have demonstrated the issue of vulnerability because of the coding. It was found in the study that there exists a considerable number of smart contracts with vulnerabilities. Therefore Blockchain configuration must be streamlined and enhanced to limit these wasteful aspects, resulting in the broad application in varied industries.
4. High Amount of Energy For Consensus
Most of the blockchains utilize the mechanism stating proof-of-work (PoW) so as to accomplish accord or the achieving consensus. However, PoW includes the utilization of the computational power of a machine to unravel complex numerical conditions for verifying the exchange and adding them to the block.
It is found that Bitcoin consumes a great amount of energy. It has been accounted like- the miners who work to approve exchanges in the Bitcoin blockchain, they consume about 0.2 percent of the worldwide power from the total per year. This is equivalent to what the nation of Bulgaria consumes. In addition, if we look to take in to account the current trend it is estimated like by 2020 the Bitcoin system will require more power than what the whole world at present employment.
This will not go along with our current worries about worldwide electricity production and consumption rate. However, if the blockchain gets into the implementation of proof-of-stake to accomplish the consensus, it will be a great aid to control the global electricity recession.
The Bitcoin blockchain is intended to be an openly visible network among users. Here under public blockchain, all the data relating to an exchange is accessible by anyone. Except for security driven coins, this is the same with any prominent blockchains currently present.
However, this feature can be categorized as imperative in a few settings, but it turns out to be an obligation factor in sensitive matters. For example, private information cannot be made accessible to all as similar to the case of exclusive business information. The information should be kept highly confidential with respect to government or money related matters.
While it is somewhat far-fetched to happen to huge blockchain systems that they remain prone to attacks say by 51%. This refers to a circumstance where a miner or a gathering of mineworkers control in excess the 50 percent of the mining power.
In such a situation, the blockchain miners would probably control the confirmations of new exchanges, particularly those by different mineworkers. Additionally, they would most likely turn around the exchanges they confirmed and double spend tokens. While the controlling excavators would not have the capacity to modify old blocks, this would seriously influence the integrity of the token with an influenced blockchain.
7. Integration with legacy systems
Blockchain technology considered to be a viable apparatus for lessening costs with respect to transaction value or streamlining the operational procedures. But to date, it is considered to be a new technological innovation with its own merits and demerits. In many industries, blockchain technology is finding it hard to incorporate with legacy frameworks. It is found that the integration procedure is probably going to be a costly issue that numerous partnerships and governments will be reluctant to attempt.
Though there exist many blockchain problems, in parallel -the distributed ledger technology offers numerous advantages to its public. Blockchain comes with significant benefits for the business industry sector like enhanced transparency, improved traceability, quick transactions and more. The blockchain problems can be easily curbed via bringing constant improvements in the architectural framework, laying stringent actions and regulations, and moreover promoting the technology for propagating good businesses rather using it for illicit activities.