Bitcoin and Blockchain Technology – Major problems
The blockchain technology is found to be a core operating technology of Bitcoin emerged in 2009 which is involved in peer to peer transactions. There are several limitations and inhibits the usability by which the current blockchain is suffering. Another software platform called ethereum is a broader one of this technology beyond bitcoin. By this one can transfer, manage the value with ease and transparency. But it is failed to provide solutions for the blockchain facing the problems of adoption.
Now we will see about the five major problems with the bitcoin and the blockchain technology
Bitcoin is considered to be a decentralized, fascinating and innovative system where there executes a high level of trust for the financial actions. There is a limit on the number of transactions in the time interval. The block size is limited by the bitcoin and the amount of gas present in the block is limited by the ethereum.
Current scaling crisis
Due to the increased adoption, theAurora mine review, says that it is more attracted towards this system, mining of the blocks in a linear chain and it results in the decreased scalability.
2) Limited programming ecosystem
Ecosystem programming was created in the first generation and also the computational and the contracts are unbiased and prevalent. Due to the increased adoption, the ethereum virtual machine limits the design and security. Even though the application development was created by the ethereum, the building complex remains difficult.
3) The vulnerability of blockchain security
There is an inadequate security in application layer with the DAO attack. Smart contracts have a code analyzer to analyze the code pattern for the development. Formal verification to create a mathematical proof. These are found to be inadequate and it leads to the major financial costs.
The tools are basic and require another hacky party and also a mobile platform for deployments. It causes the flaws in the smart contract and prevents the wide usage. The third party provides the solutions for the multi-platform availability as the framework is lacking.
5) Governance mechanisms
The governance challenges have not been faced by the first generation of the blockchain as there is no central party. Ethereum forks and the bitcoin scaling are the debates are found to be witnessed. Hence it shows the governance mechanics as a part of the protocol of the blockchain
For the development of the decentralized blockchain technology, there is a need for some organization. There should be the balance between the centralized and distributed control.