What Blockchain Needs Before It Becomes Mainstream
Along with Bitcoin, blockchain is possibly one of the biggest buzzwords in the world today.
Supporters of blockchain claim that it will change everything from financial services to healthcare. Noting that its ability to function without a central authority and also being able to store data without being tampered with.
They also think it will be greatly beneficial for several industries beyond finance and healthcare but also technology, real estate and law too. Nevertheless, there are still things which are going to slow down the growth of the blockchain, one of which is the slow transaction speeds.Â
Speaking about the challenges that blockchain faces, Deloitte has had their say on what they think needs to be fixed before blockchain can have a more widespread appeal.
Discussing the transaction speed issue, Deloitte has said:
âBlockchain can be slow. 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; the corresponding figure for Ethereum blockchain is as low as 15 transactions per second.â
They go on to say:
âBecause of its relatively poor performance, many observers do not consider blockchain technology to be viable for large-scale applications.â
Deloitte has said that work is being to create faster transaction speeds and a more efficient model. Ripple, Stellar and Hyperledger are using new consensus mechanisms aimed at speeding up the process.
Talking about collaboration, Deloitte says that more companies need to be working together in order for the technology to promote both the development of applications and education.
Several groups have been made in the sole purpose of increasing collaboration in the space and encouraging it.
In a report by Deloitte they said:
âAs a technology that facilitates transactions across a network, the value of a blockchain network increases with the number of users. Thatâs one reason why the growth of blockchain consortia is a bullish sign.â
With blockchain growing every day, some have brought up worries that with so many networks, no standard is in place to allow them to communicate with one another and exchange information.
This is known as interoperability and according to Deloitte there is a lack of it in the industry:
â[the lack of interoperability] grants blockchain coders and developers freedom and can give IT departments headaches as they discover that platforms canât communicate without translation help.â
Deloitte continued to say:
âStandardisation 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.â
What else does blockchain need before it can become mainstream? What do you think? Let us know in the comments down below!