Enormous Use Of Energy
When it comes to energy consumption the blockchain is at the top of the list. Just as a reminder, the bitcoin PoW mechanism spends so much energy that it can literally provide electricity for a country as big as Sweden! If you look up the charts and data for last year, in December Bitcoin Miners spent more than 30 Terawatt hours which is more than the energy consumption of more than 150 countries. For everyone that understands this technology and is concerned about all the energy consumption, it will probably scare them away from investing in it or working with it. This is why the blockchain must fix this problem in order to become better, faster and more efficient.
Unnecessary Data Stored
In order to keep the financial transactions and records immutable, the blockchain uses insanely large amounts of data because of the need for multiple copies distributed through the many nodes for the sake of hacking and security. This slows down the work of the blockchain and the process of distribution and has to be solved fast if blockchain wants to take the first place for the best manager in financial transactions in the world. If the problem stays unresolved, it will make it really hard for the blockchain since it is expected a growth in interest in this technology.
It Has To Get Faster
The worst truth about the blockchain is that is very slow. Take a look at Bitcoin for example. You can only make 7 transactions in one second. Although it doesn’t sound like a real problem at first, just take into consideration how it can affect the entire crypto market.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]