top of page
  • jkb4242

What's Standing In Blockchain's Way Part 1

By Jaya Bijoor

Blockchain technology offers exciting ways to revolutionize the energy industry. However, because blockchain is an emerging technology, there are challenges to be overcome

before we can apply the full advantages of blockchain to our environmental challenges.

Blockchain Acceptance

For blockchain technology to impact the environment, many users must embrace and accept it. For instance, blockchain-based applications can help with crowdfunding projects. Still, unless donors can easily trust and adopt these applications, the blockchain crowdfunding platforms will not have the numbers to raise capital effectively.

Simplify User Interface

One factor that has slowed adoption is the complexity of blockchain applications. Before any new technology can achieve massive adoption, the technology must be user-friendly and intuitive to understand. Unfortunately, most people do not understand the basics of blockchain, and many existing applications have interfaces that can be challenging

for the average person to use. If blockchain is to become accepted, front-end developers must emphasize improving design and user experience.

Technical Hurdles

Although blockchain technology has immense potential for revolution, it is still in its early stages and will only achieve its full potential when embraced by the masses. One key hurdle

that needs to be overcome is scalability, which refers to the capability of processing and confirming numerous transactions concurrently. Because decentralized blockchains depend on consensus among participants to validate transactions, two methods, proof of work (PoW) and proof of stake (PoS), are utilized to establish agreement. In both cases, most network participants must analyze each transaction and confirm its legitimacy.

Although these consensus algorithms enhance security, they also decrease transaction processing speed. A noteworthy illustration is in Bitcoin and Ethereum, which are widely used

blockchains but can only process around seven to thirty transactions per second. In comparison, the Visa credit card platform can handle sixty thousand transactions per second,

making Bitcoin and Ethereum far from meeting the industry’s speed benchmark. Therefore, if blockchain were to be adopted on a large scale, a significant backlog would occur, resulting

in potential delays of days or even weeks for certain transactions to be cleared.

Layer 2 scaling technologies like Optimism and Arbitrum are hanging transaction speeds for Ethereum as the Lightning Network does for Bitcoin. However, they still have a long way

to go to reach the number of transactions required for mass global adoption of blockchain.



bottom of page