QuickX-An Insight into the Blockchain Challenges

QuickX-An Insight into the Blockchain Challenges

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An Insight into the Blockchain Challenges

Originally developed by Bitcoin as its accounting method, blockchain technology has spread like a wildfire. The blockchain is a digitized and decentralized public ledger of all cryptocurrencies that uses distributed ledger technology (DLT) to work. All the recent transactions in a blockchain are recorded in the form of blocks and every blockchain consists of a large number of such blocks. The blocks are added through cryptography and linked in a chronological manner making the transactions occurring on blockchain unchangeable and immutable. The concept boasts of highly secure and transparent mechanism.

Blockchain Challenges world of blockchain is intriguing and has a quite promising future. The concept as of now is in its infancy. There are a lot of challenges and scope of improvement before it is adopted by the masses. Four major challenges that are keeping the blockchain researchers on their toes are discussed in the section below.

 

What makes Blockchain unfit for mass adoption?

Remember when the internet came into existence? With extremely low speed and not much data available online, it was nearly ineffective in its infancy. However, with the technological advancements and research, internet today exhibits high speed and you can find almost any information through the internet search engines. The website is increasingly being designed to be effective and compatible with whatever devices we open them on. We have come a long way since the inception of the internet, but all of this seemed so impossible in the beginning.

Think of Blockchain Challenges like the internet of the banking system. The Blockchain Challenges ecosystem, as of now, is facing many challenges but the keen minds of the world are trying their best to put an end to these problems and make the concept viable for adoption by the common people. The system, with its unmatchable security and transparency, has the potential to replace the traditional banking system. However, at present, there are a few issues that limit the usability of it. These are explained as follows:

  • The critical issue of scalability

In the blockchain ecosystem, every node connected to it has to process each transaction. Further, it also needs to possess and maintain a copy of the entire ledger. Had the blockchain been a traditional database system, the simple solution would have been adding more number of physical server computers. However, blockchain is a decentralized system where every node is a processing unit and therefore, adding physical servers at each node becomes practically impossible. Any attempt to expand the Blockchain Challenges will need more processing power, storage, and bandwidth at each node and not all the nodes participating in it may be able to meet these increased requirements.

All the blockchains including Bitcoin, Ethereum, Ripple, etc. has the problem of scalability. Although decentralization concept gives the benefits of permanence, security, transparency, and no need for intermediaries, all of this comes at the cost of scalability.

Each node that participates in the blockchain ecosystem offers computer processing power to service the network. The service provided by the nodes is compensated in cryptocurrency. This is what gives birth to transaction fees. Transaction costs in blockchain are relatively lower than the traditional banking system in most cases but the cost can still be a huge amount depending on the type of blockchain, and the urgency of the transaction.

For instance, currently, Bitcoin charges USD 20 to USD 30 for one transaction while the transaction cost of Ethereum ranges from USD 2 to USD 3 per transaction. One way of reducing the cost is by removing all the intermediaries. However, removal of intermediaries doesn’t eliminate the transaction fees altogether and there is still a huge transaction cost involved in the process.

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Cross-chain transfers at present are so tedious costly and time-consuming. All the Blockchain Challenges have their own protocols and this limits the ways in which they can communicate. For example, a sender having crypto assets in blockchain A wants to transfer assets to someone on blockchain B, the sender will have to first convert his assets into cryptocurrency B. After the conversion is done, the sender may send those assets to a wallet that supports the cryptocurrency B. Only after that, the receiver will be able to receive the assets. This process is quite complex.

There is a huge need for establishing a platform that will connect all the blockchains making the communication between them easier and seamless. After that, only the blockchain can be brought for adoption by the masses.

  • Slow speed transactions

The speed of transactions is important. Lesser is the time taken by the blockchain ecosystem, better is the functionality of it. All the transactions on the blockchain are recorded as blocks. Most of the blockchains take a certain amount of time to generate a block and the block size is also limited. For instance, Bitcoin takes nearly 10 minutes before a transaction is confirmed by the network. Similarly, Ethereum takes about 10 to 19 seconds to generate a block.

This limitation places a cap on the number of transactions that can be processed in a second. Bitcoin can manage 07 transactions per second while Ethereum is able to process 20 transactions in a second. Comparatively, the traditional electronic transfer systems are faster as Paypal is known to process 193 transactions per second while Visa has the ability to process 56,000 transactions per second. For blockchain to able to be used by the masses, it has to at least match the speed of the existing electronic systems, if not surpass them.

Above listed problems are huge but solvable. QuickX protocol has been able to address all of them to a large extent through its innovative technology that employs off-chain transactions with the help of pooling facilitators. The basic idea behind the concept is that when two blockchains communicate, the transactions in the process will take place off the chain and only once the transactions have settled will they be registered on the chain. Akin to the traditional electronic transfer systems, QuickX protocol provides seamless and instant transfer of cryptocurrencies between two parties and the transaction fees are almost negligible. QuickX is an innovative platform that intends to solve all the critical problems in the existing blockchain technology.

 

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