Blockchain limitations — what is lacking to fulfill its destiny

As every technology, blockchain also have some limitations which make it not perfect. It is a great tool, even one of the most revolutionary after the Internet. However, many entrepreneurs claim that if it will be possible to resolve below listed problems, it can be much more efficient.

Let’s go straight into limitations, if you feel that your knowledge about blockchain needs some informations to get acquainted, check my thread about basics.

https://twitter.com/kacperhernacki/status/1543931257301630976?s=21

Agenda:

• wasting power
• Capacity
• Delay,
• Chain storage,
• Security,
• API,
• Hard Fork,
• Dark pools.

Wasting power

It is not the secret that blockchain uses a lot of power for maintaining transactions validations. All the computing power is wasted for solving random equations.

The perfect solution could be targeting that computing power for solving real life problems, all of them can be solved with math. Focusing part of energy for seeking hash and the rest for science researches would be a revolution.

Role of hash in blockchain can be found in my latest challenge.

https://twitter.com/kacperhernacki/status/1544663304567721985?s=21

Capacity

Bitcoin network has huge problems with capacity. Comparing to Visa (2000–10000 transactions per second ), bitcoin achieve about 7 tps. It has to be improved, so that it can be the top financial instrument.

Delay

Mining of the block in bitcoin network takes about 10 minutes, it can be said that this amount of time is required to approve the transaction. Comparing it to visa, which approves transaction in seconds, bitcoin blockchain looks not well.

Chain storage

Bitcoin Blockchain in 2019 was about 226 GB. Downloading this amount of data can be difficult in some parts of the world. Increasing capacity impacts on chain storage dramatically, making it hardly possible to download.

Security

Talking about blockchain, it has to be considered due to 51% problem. Easily said, if some organization owns more than a half of nodes in network, it can have a control like in centralized system.

API

API used for working on blockchain network is less user friendly than standard rest API.

Hard forks

Some of the technical problems are connected with the infrastructure. When chains are multiplied, considering huge amount of them, it would be easier to plan the 51% attack.

Dark pools

Dark pools are **private exchanges for trading securities that are not accessible by the investing public.** Dark pools were created in order to facilitate block trading by institutional investors who did not wish to impact the markets with their large orders and obtain adverse prices for their trades.

It can be a nice solution, when transactions on the blockchain are transparent, investing is like roller coaster. Hiding some informations which destroy “healthy market”

can be very good for the future of this technology and also mass adoption.