The path to Mainstream distribution is with any new technology, slow and arduous. Also in the case of Bitcoin. The following four factors could speed up the process, however.
In recent years, the proliferation of Bitcoin and crypto has reached certainly the greatest pace. Certainly the most epic rally the end of 2017, has helped, than to suddenly read anywhere in the Mainstream media of digital Assets was.
It must, however, be done only a few things, before BTC can really be of the broad masses adopted. A recent media article in ‘The Startup’ has identified four challenges that must be overcome in Bitcoin, before he can really get in the Mainstream.
Contents
Shorter confirmation period of Bitcoin transactions
The Bitcoin network must be able to process near-instant transaction validation, in order to be as useful Peer-to-Peer currency used. According to the report, it is “for a Trader is inconceivable to let a customer ten minutes to wait before the Bitcoin is validated transaction complete”.
If the network is overloaded, you can increase this time dramatically, which even in times of market volatility, it is disadvantageous.
The Problem with micropayments has channels designed to fix the Lightning Network. However, it still has a long way to go.
More transactions per second
At the Moment, Bitcoin only supports about seven transactions per second. This is far from what would be needed if everyone would use it. At the beginning of last year, the TPS approached-Rate was a maximum, but it is still far from Visa, which currently supports about 24,000 transactions per second.
The maximum TPS of Ethereum is with 15, about twice as high as in the case of Bitcoin, but even that is still much too slow for daily use. Ripple is better with a claim of approximately 1,500 TPS for XRP, the Token of centralisation, however, has problems.
Here, too, progress in the Lightning Network, Bitcoin could bring back into the game, what affects the rates of the transaction.
Reduction in fees at high volumes
The report also notes that the Mining must be reduced fees for the practical use. Currently, the fee for validation of a transaction is not according to the report, at about 0.3$, but that is by the amount of the transaction, depending on the.
The fees will increase when the transaction volume increases during peak times of the network – such as the end of 2017, $ 30 for a transaction. This is completely impractical for the Mainstream dissemination, which will lead to massive volumes, which are even greater than the current all-time highs.
Decentralisation of the Bitcoin-mining
Major theme is the centralization of Bitcoin mining is currently. In China, about two-thirds of the total Hash Power in the network is eliminated, so that it could, in fact, exert some control over.
Bitmain, the Chinese manufacturer of Mining Hardware, also controlled some of the largest Mining Pools, what are the concerns regarding the centralization strengthened.
The concern is that Bitmain could be in the position to manipulate the network by taking control of more than 51% of the Hash Rate. However, it is not in the interest of the company not to endanger its revenues.
Outside of China Mining-farms to mitigate this Problem, but the Hardware vendors remain centralised.
The most important crypto-currency has to cope with these and many other challenges before they can replace the current financial system as a truly decentralized Form of digital money.