Is blockchain technology a flash in the pan? Is it something that will be dismissed in the near future as a reasonably good idea but ultimately unworkable?
That is not very likely. It is true, the tech itself is not very advanced, but then neither was internet technology at one stage and look at how that turned out. Besides which, it has already displayed it’s staying power.
Bitcoin, the granddaddy of all cryptocurrencies, was the very first application of the tech. And, believe it or not, it was released back in 2009. So, is it workable? I think we have proven that. Will it survive exactly as it is? Probably not, according to those in the know, like the people at BitFortune.net.
For starters, if you look at the Bitcoin chain, there are some serious problems when it comes to the size of the blocks. The original concept is not all that scalable because the initial block size was 1MB.
This was not much of an issue when there were only a few transactions being processed a day. It has started to become a much larger issue now, though because it impacts the speed at which transactions can be processed.
In theory, as soon as your transaction is signed and submitted, it is added to the next available block. On paper, it sounds good. Until you realize that there are hundreds or possibly thousands of transactions in the queue ahead of you.
Now, while that is specifically an issue with BTC, it does highlight the fact that there are certain issues with the underlying tech itself. Any company wanting to implement a new application based on it will have to keep this in mind going forward.
The next issue here is the verification of data and the amount of energy that it consumes. Currently, most blockchain-based applications run on what is known as a proof of work system. This means that miners on the network must solve a mathematical problem to “mine” a block.
If they get the solution first, they are awarded cryptocurrency. The issue with this is that it requires a lot of electricity and processing power to come up with these answers, and a lot is wasted as a result.
Remember that there are many different computers on the network working on the same problems at the same time, and this means that work is done over and over again.
One alternative is the proof of stake model. Basically, the idea being that the person mining blocks is allocated a percentage of blocks based on how many coins she owns. So, if you owned 10% of all the coins out there, you would be allowed to mine 10% of the transactions.
This system would reduce redundancy, but it does create problems of its own. But, as we said earlier, we are still only in the beginning stage here – who knows what kind of alternative solutions will be presented in future?
As mentioned earlier, different industries will have different benefits from implementing blockchain technology, and that is what this infographic is all about. For example, the banking sector will get faster transactions, lower costs, improved security, and better record keeping.
Also, the blockchain technology can improve electronic voting systems. With this technology integrated into a voting system, governments won’t be able to tamper with votes because blockchain creates publicly viewable and singed transaction that can’t be changed or rewritten.
This infographic will help you understand how the blockchain technology can and will improve 16 different industries, from music to government. So, read on and find out what their future will look like.