The Three Major Obstacles Preventing Bitcoin from taking over the world for the Better
Dec 10, 2017 Posted / 1628 Views
The debate on Bitcoin scaling has been one of the longest-running within the bitcoin communities causing a major split in Bitcoin within the same blockchain. The scalability issue is brought about by the limit on the maximum amount of transactions the Bitcoin Network can process. The original Bitcoin blockchain limits block size to just 1mb. This one-megabyte limit has created a bottleneck in Bitcoin transaction traffic resulting in an increase in transaction fees and delay in transaction processing time. Propagation of smaller transaction has been rendered impossible since the transaction fee would eat up the whole transaction.
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Many proposals were presented to the community by various elites in the Bitcoin ecosystems resulting in series of debates on which one to choose so as a fork on the bitcoin mainnet can be initiated. These debates are basically the ideological battles over the ultimate future of bitcoin. On 21 July 2017 miners reached a consensus on a software update referred to as the Bitcoin Improvement Proposal (BIP) which saw the activation of the segregated witness (SegWit) after block 477,120 was reached. Segwit saw the increase of the block size from the originally designed 1 MB to 1.8 MB. The segwit2x which was to followed after aimed to shift powers from the bitcoin core developer to Bitcoin miners, unfortunately, it’s developers called it off around November 8th before it could be implemented in November 16th, 2017.
Another of the many proposed solutions being worked to solve the scalability issue of bitcoin is the Lightning Network. The lightning Network is still under development but aims to fix Bitcoin scalability problem by scaling off-chain (out of the Bitcoin blockchain). The protocol will allow spending of a transaction before it gets all its required approvals a process that will fasten transaction speeds while still keeping the transaction secure. The developers of the lightning network claim that its implementation will make micropayments possible on the bitcoin blockchain. However, the lightning network protocol gives too much authority to bitcoin miners which could be a disadvantage should 51% of miners reach consensus they could monopolize the network.
Another issue which still surprisingly remains a major barrier to bitcoin going mainstream is the way bitcoin is packaged for the public. Bitcoin usage still involves very many layers of complex encryption which could be nagging to less tech-savvy consumers.
Over the years bankers have worked hard to make their services easy, secure and more user-friendly with simplified user interfaces translated in the local languages spoken in the region. Bitcoin needs to allow for a similar approach it is ever to be adopted by the masses. Although inventions of the Bitcoin ATM is a major step towards this direction more still have to be done in order to attract more and more people. Beside the Bitcoin price fluctuation scares off most users a firm willing to set a constant price for users can make millions in profits due to the ever-increasing price of Bitcoin.
Traditional banking services do not only take place on the internet or the bank, very many digital and analog platforms can now offer quality secured banking services for the comfort of one's home. Bitcoin needs to adopt a similar move in order to become mainstream. Beside the bitcoin core, developers should not be an entity of concern with maintaining bitcoin running only but should also develop services that can be directly used by the consumers this, however, compromises with the bitcoin decentralization agenda. Nevertheless, consumers will have more trust in products from the original bitcoin core developers.
The last main issue preventing Bitcoin from going mainstream is the failure to reach a constructive consensus with the governments. Most governments still consider bitcoin illegal which becomes problematic to complete the cycle of bitcoin transactions. Countries, where bitcoin is termed illegal, cannot host physical bitcoin ATMs or Bitcoin exchanges yet these are the components needed to fuel bitcoin to a mainstream status.
Bitcoin was brilliantly designed and many governments fear that allowing it to take a legal status will render some arms of the government inactive as human nature and errors are not in the bitcoin blockchain. What this anti Bitcoin vigilantes don't see is that getting rid of human nature will significantly cut corruption in the government and avail a lot of excess funds that can be used to finance developmental agendas in the country.
The mostly praised anonymity feature of Bitcoin is actually two-sided. This means if your bitcoin address is already known everytime you transact on the bitcoin blockchain you are being observed. This ‘loophole’ has been solved in been fixed in some other cryptocurrencies.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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