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Blockchain Scalability Issue: Is The Future As Bright As It Seems?
Ever since the world stumbled upon the word cryptocurrency, there has been a continuous excitement amongst tech-savvy enthusiasts. Blockchain innovations only add more to the drama by introducing more advancements to existing models and working on newer ones. Not long ago, no one would have ever imagined that there shall be a virtual currency form featuring a decentralized approach. It was not only a far-fetched thought but also one that seemed impossible. However, after the cryptocurrency’s release, more and more users are awakening to this new reality of possibilities and eager to decipher what more can it bring along.
But no matter how prosperous it goes on to become, it still faces the issue of scalability. In order to keep its growth stable, analysts need to address this issue of scalability at the earliest. Succeeding in this quest will offer cryptocurrency the traditional approval it craves from financial markets.
Blockchain’s Scaling Issue
It is not a hidden fact that blockchains can be severely impacted if they fail to capacitate scalability. This issue arises due to the nature of consensus protocols of the blockchain. As per the guidelines, each applicant node on a cryptocurrency network needs to process every transaction specifically occurring in that network.
This very feature allows blockchain to follow a decentralized approach but at the same time prevents this innovation the capacity to scale. Whenever a new transaction is processed one more block is added to the transaction ladder in the blockchain.
All those who wish to question the scalability issue with blockchain needs to see the large quantity of associated data with transactions. Initially, Bitcoin blocks were topped at 1MB equating to 2,020 transactions. Yet, it was still possible to make infinite transactions on each coin. All these transactions are recorded on each block.
As the records grow and transactions continue, the block sizes kept increasing without limitations. Even if we increase the cap-size per block, it still remains difficult to keep scaling up.
This results in the blocks growing in size with processing times becoming longer than before.
Can This Issue Be Addressed?
Pressing transaction activities is a way to scale blockchain. By making use of the side-chains for small transaction management whilst tape-recording the consensus on the blockchain can ease this issue. If this is implemented, users will be able to make an offline transaction. In this regard, the first chain will only display information about the transaction and not become associated with it.
Another smart way to resolve this issue of scalability is by using small-sized networks. They have fewer nodes that help identify the scaling capability of the blockchain network. The small-sized network also makes it easier to get a result of all the transactions happening on the network.
Conversely, increasing the size of the blockchain may also offer a solution as more transactions will then be accommodated at a time.
Final Word
No one expected blockchain innovation to enjoy this widespread adoption upon its origin. Its ever-growing popularity demands that the issue of scalability be addressed. Furthermore, a permanent solution be implemented to eliminate further issues. Once this issue at hand is taken care of, users will be able to enjoy superior performance leading to increased users and pervasive adoption.
Open source platforms have come to the fore, and their global recognition is testament to the changing paradigms. The Internet, open source platforms and blockchains have a glue ring that can be easily identified. Several advantages of the blockchain technology can be illuminated in this light from different angles.
Blockchain as a distributed ledger that is immutable, publicly available and decentralized, uses the Internet and open source functions. Using the blockchain requires an internet connection, and the nature of the blockchain exists thanks to the open source design of Satoshi Nakamoto and his colleagues. The use of blockchain in the modern world extends to sectors such as investment brokerage, medicine, procurement and procurement, as well as education. Cryptocurrency originated from the blockchain, and for those who want to make money, learning Bitmex is helpful.
#1: Blockchain can facilitate payments
Earlier we mentioned that the information in the Blockchain is open to anyone. This means that you can see the transaction history and the way in which it was performed. Information about the size of the transaction is also open. At the same time, the identity of the addressee and addressee is not disclosed. This is the transparency of the blockchain. Access to Blockchain takes place using special keys that guarantee the reliability of the entire network. He has every user. The key is a set of cryptographic records. It is absolutely unique, which guarantees the impossibility of data substitution and hacker attacks. To do this, hackers need access to all computers on the network.
The blockchain has appeared along with the pioneer of all Bitcoin cryptocurrencies. We talked about its functionality and “responsibilities” above. Blockchain guarantees transactions and stores all data about them. Vitaly Buterin and his associates tried to make a qualitative step forward. Ethereum cryptocurrency blockchain is often referred to the second generation. He has his own particular architecture.
#2: Blockchain simplifies international payments
Obviously, the blockchain technology is relevant not only for cryptocurrency transactions, but for the entire FINTECH sphere as a whole. Everything related to transactions can be supported by the blockchain.
The prospect of Blockchain in the financial sector recognized the largest banks in the world. Back in 2013, the R3 consortium was created. Such banks as J.P. Morgan, Goldman Sachs, Santander, IТG and others. The group is engaged in testing a decentralized registry in the banking sector. Individual banks are also investing in blockchain startups that have been regularly appearing over the past few years. The interest of banks in technology is associated with the potential threat that cryptocurrency represents for them. Blockchain will help reduce transaction costs, make them safer. However, the implementation of a fully decentralized protocol in the banking sector will undermine it from the inside.
#3: Blockchain keeps a permanent record
The practicality of the blockchain is indisputable in all that relates to data storage and authentication. This decentralized data system has the potential to eradicate corruption. In the blockchain, you can record the dates of birth of people, financial transactions, fingerprints. Store information about documents like diplomas, passports, driver’s licenses. In the future, this may help in combating all sorts of fraud.
The world of digital money is so diverse and changeable that it is hardly possible to physically embrace and illuminate all the cryptocurrencies that represent it. Often, you just notice somewhere in the depths of consciousness the emergence of a new representative of this large pleiad and safely forget about it, until you accidentally come across information that somehow catches your attention. You start digging deeper and it turns out that the coin that you betrayed to oblivion is rapidly developing, approaching the first lines of various ratings.
Brief story
The beginning of the subject of our conversation was laid back in 2004 by Canadian programmer Ryan Fugger. He then worked on the Ripplepay payment system, which he launched in 2005. The development of the company took place at a moderate pace, but steadily, and after 6 years it was decided to create a decentralized network without mining, but with a higher speed than the cue ball. At this stage, the team added another member – Chris Larsen, who eventually led Ripple Labs. In 2012, a subsidiary of Ripplepay, the company OpenCoins, appeared. Its activity was focused on payment functionality and its improvement.
How to become the owner of Ripple?
In the distinctive features of the new cryptocurrency, we figured out, now let’s talk about how there are ways to get it into the property.
Well, the easiest way is to go to some specialized exchange or exchanger where Ripple is represented and buy coins. It is easier to do this through the exchange office. There is no need for registration, it is enough to pay for the purchase with funds from a bank card and coins will be transferred to your wallet.
The process of buying through a stock exchange is somewhat more complicated. You will need to register for an American specialized service and replenish the balance there. That is, you must have some kind of cryptocurrency (cue, lightcoin, etc.), which you will pay Rippl. However, there is nothing difficult in this process either, the standard procedure.
Cryptocurrency Ripple and its features
One of the features of this crypt, which can be seen “with the naked eye”, is the total mass of coins on the market – there are 100 billion of them. All this set has already been mined by Ripple Labs, that is, it is impossible to mine this digital currency. The company is engaged in the free distribution of its product. A little later we will focus on this process in more detail, but for now, let us return to the features.
There is only one serious feature left, which, perhaps, will plunge many into shock (so that we should leave the faint-hearted to retire). The fact is that in the process of conducting monetary transactions, the currency is destroyed. Well, are you already in shock? Jokes are jokes, but this really happens and this is how – the commission for each transaction, amounting to 0.00001 dollars, does not get to the miners, as in the PTS network, but is simply destroyed. On the one hand, this is, of course, a trifle, but, on the other hand, after each transaction, the money in circulation becomes, if not much, but less.
Why such oddities? All for the sole purpose of avoiding scam attacks. Now an attacker who creates hundreds, thousands, or even millions of mini-transactions aimed at hindering the normal functioning of the network becomes unprofitable such as “subversive” activity. In the event of an attack, the commission will increase to a level that is guaranteed to make an attempt by fraudsters to be unprofitable. For a normal user, the loss of a tiny commission does not make “weather”, but for a spammer with millions of operations, the loss can result in a significant amount.
Is it worth investing in Ripple?
Of course, everyone gives the answer to this question to himself. But good to know and expert opinion. And they, besides those listed above, mark several other points in favor of Rippl.
To begin with, the support of the market value of the coin is due to its potential growth in the eyes of large financial organizations and institutional depositors. The company is protected from problems with regulatory bodies, because its work is carried out in accordance with the law, and the board of directors consists of quite influential and well-known people who, if something happens, can influence the situation.
This cryptocurrency was created on January 18, 2014, by developer Evan Duffield, who took Litecoin / Bitcoin code as a basis. It was originally released under the name XCoin, and ten days later, on January 28, 2014, it was renamed Darkcoin (“dark coin”) to emphasize its purpose for secret payments. Finally, in March 2015, it was re-branded again and assigned the name “Dash, friendly to regulators,” an acronym for the phrase Digital cash.
Why Dash is better?
Dashcoin cryptocurrency is a lot like Bitcoin, but at the same time, it has a lot of advantages. One of the first key differences is to call the unique X11 Algo algorithm written by Duffield, which is a two-tier structure that provides high anonymity and excellent payment protection. At the time when transactions through Bitcoin can be traced using the appropriate key points and algorithms, in Dash, all links between payments and account are erased, excluding the possibility of any manipulations.
Loyal following
The first thing that made the creators of Dash – branded Bitcoin and Litecoin label “pseudo-anonymous.” Since the data on all transactions (amount, time, addresses of the sender and recipient) are stored in the public blockchain, financial transactions can be monitored and compared through special software. For example, if a person decides to purchase an air ticket for BTC, then the passport data left by him can be linked to the Bitcoin address and see his entire financial history.
Speed
If it’s not privacy that matters, but speed, then another method is available for “digital cash” transfers in Dash – InstantSend. When using it, it is not miners who check transactions that are produced, but 6–10 randomly selected masters, powerful and smoothly running servers. As a result, the transfer of crypto money from one address to another occurs almost instantly.
Flexibility
According to the developers, the Dash management model is superior to the Bitcoin model. While Bitcoin development is dependent on community input, the Dash network is funded by the transaction fees it generates.
Low cost
High-speed translation using InstantSend on the Dash network costs a few pence. It is cheaper than Western Union or PayPal. And the fee for the usual transfer, which will last about 2.5 minutes, will be scanty $ 0.001.
How to buy Dash
You have two main ways to buy Dash: exchange Bitcoin for Dash or buy it directly through fiat. The easiest way to buy Dash is if you already have Bitcoin. Bitfinex, Kraken, ShapeShift and Bittrex are several popular exchanges that allow you to trade Dash. Buying Dash through fiat is a little more difficult because there are not so many platforms. The sites that offer fiat-to-Dash are BitPanda and Kraken.
Dash wallets
Wallet Dash is based on a Bitcoin wallet for a Bitcoin currency called Bitcoin Core QT wallet and is equipped with the Darksend service for the fastest and most anonymous transactions. Also, the wallet is equipped with special functionality – PrivateSend, and InstantSend.
The wallet program can be downloaded from the official Dash website. After installation, it will take some time to synchronize, but after going through all the necessary procedures, you get a much faster and safer product than a competitor.
Should you invest in Dash?
Currently, Dash has strong support from well-known venture capital companies, namely Venture 51 and Core Innovation Capital. In general, the prospects for Dash in 2018 seem to be very bright. In addition, Dash is now working with TenX and issuing its own debit cards. As a result, there are even more options for using Dash currency in the real economy. In this regard, the growth of Dash in the near future is even more likely.