World has been changed because of internet. There are many different events and inventions that the world cannot forget about. Like World War one, World War two, the inventions like penicillin, computer network and world wide web at the end of 20th century. Likewise, block chain technology is something you cannot leave without mentioning because it has changed the dealings of the world in a very effective manner. May be you have heard the name Satoshi Nakamoto. This name is often considered as synonym of bitcoin when it comes to Blockchain Scalability.
Blockchain started with the invention of bitcoin used by that anonymous person Satoshi for the first time, later on, it was started to get used in different other areas as well. Like in food chain industry, in small contracts and other cryptocurrencies, there are some issues going on with this technology like “blockchain scalability”. We will discuss this particular issue in detail, but first you should know about scalability and the mechanism of block chain technology.
Mechanism Of Blockchain Technology:
Do you know why blockchain technology is increasing its trust in various fields specially in finance and record keeping? This is because of the level of security that it provides. The processing done in blockchain system remains save and it is impossible to alter or hack it. Whenever you do a transaction in blockchain, it simultaneously makes duplicates of it, and show it to other computers linked in the system. This distributed data is known as DLT (distributed ledger technology). The data is stored in form of hashes. Hash is an irreversible function.
Blockchain means chain of blocks attached with each other, this is the basic idea of its security that if someone wants to steal it or malware it, he has to change all the blocks attached with each other. The wise system will reject and falsify his inputs. Besides the security, other discussable properties of blockchain include unanimity. Your name and location remain personal and they won’t be exposed to anyone. Block chain technology is programmable. You can use it for various businesses as mentioned above. Time records are also available in this technology.
With all these benefits, cryptocurrencies are still not completely accepted in communities easily. People have a lot of misunderstandings about them. But because of the mechanism of blockchain technology, the feedbacks are very satisfactory and that is the reason of popularity of bitcoin.
Drawbacks Of Blockchain Technology:
Nothing is perfect, so blockchain technology also has some limitations, but when everyone talks about the importance of something, its draw backs usually get hide behind it. Despite the invisibility of the pitfalls, the problem remains as it is. There are many drawbacks of blockchain technology. Some of them have been discussed in this section. Despite being decentralized, it does not share the computing systems, and this aspect is not preferable for many businesses. It demands high processing power computers that come at a high cost. Obviously, super computers will consume super energies. The numbers of nodes in this system are not fixed as in other networks.
So, a computer needs to work out from initial point after every transaction. The function cannot be reversed. It is no doubt a good thing from security point of view but also considered as a drawback because if in some case, you don’t want any data to stay there, and you want to delete it, you cannot do so. Blockchain process is usually time taking, with lot of users using it, so it becomes slow that is a bit irritating. Blockchain scalability is obviously an issue, but before we dig into it let us discuss about scalability.
It is the ability of a system to scale something. According to a dissertation help firm, it is necessary to scale something for its easy handling and management. Especially in the cases when you have to deal with product of various sizes. If you fail to scale them properly, you will have to face costumers complain. Your efficiency will decrease because you will spend more time to find the required product. Moreover, you cannot use your available sources with equilibrium and it will pressurize some area more than other.
In network systems, scalability also matter because networks can grow in size regarding the bandwidth they are using or the quality and quantity of nodes and other protocols involved in the process. So, it is necessary that you scale your network too, so that you can manage the work load and provide best output of your available services. Similarly, in blockchain system, due to popularity of bitcoin, more and more people are using blockchain. Because of the nature of its mechanism, it has become slow, for example, other digital networks can handle even more than 20000 transactions per second while bitcoin can handle only 7 and Ethereum only 20.
You cannot lemmatize the use or the number of transactions for better speed. Blockchain scalability is not easy to handle because to handle the increased traffic, you have to produce more nodes, and increase in nodes means you will have to increase the fee of miners as well because they will be consuming a lot of power to examine every node. Now you cannot scale the nodes with the fee and one thing is sure that you will be spending more money to keep miners happy and connected with the network.
To improve Blockchain scalability, developers are working hard enough and to reduce the work load, and a particular cryptocurrency can share their load on different servers. But the factor of time taken by a single transaction has not been resolved yet. Every transaction is encrypted by peer-to-peer method. So, verifying them requires a long time as compared to other transactions. It takes at least ten minutes to verify a bitcoin transaction and the process can elongate even more, and if transaction is fake, it can go for hours may be.
To handle Blockchain scalability, a fork system has been introduced which has two types; one is hard fork and the other is soft fork. In these forks, there were some rules made to categorize the data handling. It really works there are still some improvements that are needed to be done.