5 Immediate Steps For Blockchain To Become A Widespread Phenomenon
– Increased performance
The 21st century is all about being fast and even more fast. Its undeniable how speed has influenced everything around us, and this perhaps is one of the most criticial flaws in the whole concept of the blockchain phenomenon. In contrast to some legacy transaction processing systems able to process tens of thousands of transactions per second, the Bitcoin blockchain can handle only three to seven transactions per second. And because of this relatively slow performance, many observers do not consider blockchain technology to be viable for large-scale applications.
With an increasing number of players in the industry; Some worry that with so many different networks, no standard exists to allow them to interact with each other. This standardization is what the industry calls interoperability. The lack of interoperability “grants blockchain coders and developers freedom — and can give IT departments headaches as they discover that platforms can’t communicate without translation help.” Standardization, on the other hand could help enterprises collaborate on application development, validate proofs of concept, and share blockchain solutions as well as making it easier to integrate with existing systems.
– Reduced complexity, cost
One of the frequently noted criticisms of bitcoin’s blockchain network is the fact that it relies on intensive computing power. The price tag of validating transactions could be a problem for the widespread penetration of that technology in commercial activity. Complexity is yet another issue that companies are widely working on to reduce in the coming years, but its a general feeling that with time and greater adoption – this factor would gradually decrease.
– Supportive regulation
As cryptocurrency prices spiked last year, regulators became increasingly uneasy about the speculative nature of the market. Existing regulations, like the ones that don’t cover smart contracts, which could inhibit investment in blockchain. Smart contracts contain a set of conditions under which a buyer and a seller are in agreement. When those conditions are met, the contract is automatically enforced, something which proponents say is more proficient than paper-based contracts.
– More collaboration
More firms working in the sector need to collaborate in order for the technology to promote both the development of applications and education. A number of groups have been formed aimed at increasing collaboration and encouraging standardization. This could help the aforementioned problem of lacking interoperability between networks. “As a technology that facilitates transactions across a network, the value of a blockchain network increases with the number of users.”