Today, the blockchain has become the most important and biggest phrase in the technological and financial world. The supporters of Blockchain technology regard it as a technology that can revolutionize the current financial system and can function independently without any central authority in a secure way.
The benefits of this technology can be seen beyond financial and technological industry including law, health care, and real estate. While it has been popular globally, Blockchain has to overcome a few challenges so that it can be adopted globally.
The biggest challenge in the path of success for Blockchain is its scalability. The major blockchain networks, Etherium and Bitcoin, both have been experiencing high fee and slow speed per transaction with a significant increase in the number of users. The blockchain technologies are facing huge trouble handling a large number of users. Although there have been researches worldwide to come up with a solution to resolve the issue of scalability, this probably might take a substantial amount of time.
In its original form, the Blockchain was developed to be visible publicly. This feature has been essential for the cryptocurrency network. Although this has been the reason for concerns for the government, the corporations and governments need to restrict access to such data for numerous security reasons. Hence, an essential feature of transparency of Blockchain has become a challenge.
The majority of the blockchain technologies use PoWor Proof of Work method to accomplish consensus. This involves the consumption of computational machine power to solve mathematical equations to verify the transactions. Although, the mechanism is effective but consumes a significant amount of energy. Going with recent trends, if the Blockchain is used to do all the transactions worldwide, it will require twice the electricity the whole world is consuming right now.