Blockchain Technology Challenges
The Blockchain Technology is one of the most popular technology in the last years, because of the revolution that can add to financial domain and also the big community that are interested in this new technology. for this we start a series of articles that give an introduction to Blockchain technology and to clarify many things about this complicated technology. currently and with the five article a very one has a general idea about Blockchain.
What is Blockchain Technology
Blockchain Types Structure and Life Cycle
what is Blockchain Structure and Layers
Advantages of blockchain technology
in this article we will try to identify the challenge of this technology and how can solve some problem in the community.So let’s learn more about the challenge of Blockchain Technology
These disadvantages, along with the requirements for multi-faceted interaction with the digital world, have been set for the blockchain technology to be addressed such as:
This new technology is required to solve challenges such as transaction speed, verification process and data limits. Therefore, the application of new regulations will be very important;
Uncertainty regulations: Modern currency is always created and regulated by governments. Blockchain and Bitcoin will face obstacles to be widely adopted by existing financial institutions, especially if the positions of government regulation remains unresolved.
Large power consumption: The Bitcoin blockchain miners must strive to make an average of nearly 450,000 billion computations per second, to confirm the transactions. This entails the need to use a significant amount of energy to supply computers.
Control, confidentiality and privacy: Although the existing solution includes encrypted private keys, there are still security concerns on the internet that need to be addressed, before the public can entrust their personal data to the blocking solution.
Integration issues: Blockchain applications provide solutions that require significant changes or complete replacement of existing systems. To make the transition, companies need to have strategic transformation plans to accommodate these new changes.
Cultural acceptance: Blockchain represents a radical change coming to a decentralized network that requires the acceptance of users.
Cost: Blockchain offers a great ability to save on transaction costs and time but its high initial capital costs are a drawback.
Generally, the appearance of blockchain is similar to the period of personal computer or internet technology. With recent contributions, along with new discoveries of potential in many other areas, the blockchain is expected to change the way people understand and perceive all facets of society. In the 4.0 revolution, Blockchain is said to be the pioneering technology that will play the core role of the universe in the IoT world. Predictably, Blockchain will enable electronic devices to communicate securely and transparently, preventing illegal hacking attempts in the internet world and much more. If there exists fundamental difficulties in implementing blockchain, then it is probably to ensure the order of past and present cryptography, but it is not a reason to ignore its role. However, the application of blockchain technology still takes time to be developed more, mostly about its benefits. The immediate need is to minimize thecosts incurred when using the system and then to open it up to a wider future.
In short, in the internet age along with the future of globalization, the development and innovation in blockchain technology can take place anywhere, without requiring proximity to traditional technology development centers. This is an opportunity for countries with underdeveloped economies. This opportunity is more valuable when most developed countries already have a number of well-functioning systems that may lack the incentive to apply the new change that Blockchain technology encompassed.