What do you know about Bitcoin and Blockchain technology?
Over the years, the Bitcoin blockchain has proven for being strong. Bitcoin blockchain has even withstood cryptographic verification and adversary attacks, when attracting more investors, users and participants.
Bitcoin and Blockchain Technology Limitations and Challenges
Currently, there are some limitations in the Bitcoin blockchain design. They are as follows:
- The size of the block is about 95 GB and is still growing, since the bitcoin blockchain is preserving the entire records that are linked together.
- The bitcoin blockchain technology is slower at about 7 transaction per second, than the present payment methods like Paypal, SWIFT, or Visa.
- Latency at present consumes over 10 minutes for creating a new block, that results in introducing Latency.
- By design, bitcoin blockchain will be consuming lot of power for performing complex computations as proof of work. In the infograph, you will be exposed to a differing estimates of its power consumption. When compared with the computational power of the 500 most innovative supercomputers that are combined, the computation power of the Bitcoin blockchain computers are eight times more powerful.
- Some of the economists may argue that bitcoin might be inflationary in the long run, which results in its downfall. This is based on the given theoretically limited supply of Bitcoin.
- There is a need for Bitcoin blockchain for devising additional, solid computational challenges for keeping pace with the quantum jump in computing skills.
- The power of individual miners, in connection with mining pools had diminished, since the mining has become computationally intensive. This sort of trend if continues, then there could be a scenario of a monopoly mining pool emerging and overthrowing the basic design of the method. In addition to that, there is a concentration of hash power in a single country, namely China with attendant geopolitical hazards.
- The “open source” which is a Bitcoin software code, is handled and written by voluntary coders who are working independently in an informal self governing structure, that has been prone for criticism from different walks of life. For the purpose of finding acceptance as an industry utility, its internal organization is required for redefining.
As the legal structures currently stand, the regulatory implications of the revolutionary technology will be presenting a dilemma for them.
Currently, there are lot of misconceptions about bitcoin and blockchain technology by the general public but we hope this infograph would help you shed more lights on the way forward.
Bitcoin And Blockchain Technology: The Challenges and Way Forward Explained (An Explanatory Infographic)
Here’s an infograph with detailed information on how bitcoin blockchain was created and how far it has gone. You’ll have the luxury of learning about other innovative ways you could use bitcoin and some of the challenges they pose.
Infographic first published by BitcoinFy team before it appears on TechAtLast.