Perhaps the way concept of Bitcoin has proliferated across the globe, which has corresponded the same level of strength like mobile app development. But Blockchain is yet to receive the same level of fame. If you are aware about Bitcoin, then you must understand that the underlying technology is blockchain which is a global online database that can be used with internet access. This is somehow dissimilar to the traditional databases closely-held by big institutions. A blockchain doesn’t belong to anyone in particular. Additionally, it has an entire network of people supervising it.
Along with massive number of people monitoring, there are equal number of cases cheating the system with counterfeit documents. Although it cannot be denied that blockchain has been growing but still in the stage of instability.
While more and more private entities, and even Government tried to harness the best out of the technology when they confronted with number of shortcomings majored for instance scalability which has developed a sense of pessimism. In the same time developed a sense of bullish as far as bitcoin and Etherem are concerned.
In 2017, Blockchain has proved itself disintermediation and trustless exchange with high quality data but germinated some area of concern that is expected to go wrong in 2018.
1. Ambiguous purpose of blockchain technology
Blockchaintechnology cannot be utilised effectively until and unless a factor of trust can added to the untrusted environment. Although technology is promising yet precarious stage.
But the factor of trust is still being sceptical as far as consumers, regulators, and industry leaders are concerned. For instance, maximum proportion of society is still spinning around the Bitcoin’s challenging past.
While some of the financial service still questioning its capabilities as the innovative products are still flowing from the Fintechand are even sceptical turning it into viable commercial model on an enterprise scale. According to Gartner, a trust model must be added to the enterprise in order to have a clear vision between trusted and non-trusted areas and the concept must be implemented to untrusted parties.
2. Do not store real data
As far as first generation of blockchain applications are concerned, then Bitcoin derivatives do not store real data in it. Instead they are stored in the form of hashe i.e.
digital fingerprints. While these likely representing the digital assets on-chain which can be a favourable step towards digital assets , while the primary disadvantage is that logic and data permission are quite arduous to be implemented. Another disadvantage is that it elevates vulnerability since data is required to be stored somewhere.
3. Issue of scalability
One of the serious issue when it really looks to differentiate between public blockchains and private blockchains. In case of public blockchains, there are multiple nodes that are operated by the hobbyists.
Hence even if the network is more likely to be decentralised, it has to be kept into the mind that the transaction volume will be massively hampered. While in case of private blockchains, the issue is rather distinct where the operation depends on the nodes who have the interest to trigger the successful treatment of the transaction.
For instance Bitcoin and Ethereum were not built to scale as per the suitability but all the smart contracts and transactions lie on a single public chain instead of state channel keeping the cryptographic properties to be constant.
4. Could not satisfy aspect of cost saving
Although one of the advantage of blockchain technology is that third party is no longer needed to involve which somehow reduces the chances of storing any confidential information in the external database while the cost of integration and initial capital costs overshadow the lower transaction costs.
With the involvement of multiparty system, it eventually looks to increase governance and analogously security increases the cost exponentially with multiple folds of scale.
5. Too-complex
Blockchain is considered to be one of the complicated procedure which is sub-divided into public blockchain systems and private blockchain systems. It is also categorised under permissioned and permission-less systems.
It relies on the basis of shared, distributed, federated ledgers and bitcoinblockchain as per thefinanser. It has perhaps posed a new exposure of the bankers but they find it more like a foreign language which further intensifies the level of complication of multiple ledgers while reducing the clutter.
6. Could not eliminate risk factor
Since there is a rich branches out from the blockchain, which elevates the chances of double-spend attacks due to the decentralised nature of blockchain elucidate the recourse of double-spend attacks. Another issue which is more likely trigger is that the transaction does not process according to the expectation of the purchaser which has posed primary challenges for the wider acceptance of this technology.
According to Angela Walch, an attorney and assistant professor at St.Mary’s University School of Law highlighted thatblockchain is not something analogous to signing a contract with a third party for the sake of service, instead financial institutions must gear up to face some serious complications while switching into the virtual ledger due to it’s decentralised software with open-source development process enhances some governance risks against its potentiality.
7. IOTA policies
While comparing IOTA (or more particularly, Tangle) with Blockchain, there are main sections in which the entire architecture is divided on the same principle.
• Datastructure: IOTA which spins around parallelizing validation and no additional transaction fees, and is based upon DAG( Directed Acrylic Graph) which is something opposite to the structure as a sequential chain where blocks are supposed to be added at a regular interval. It is considered to be safer and secured as compared to Blockchain technology.
• Concensus: While IOTA spins around the participants that are involved in the network, it does active participation in the consensus while blockchain follows a rigorous mechanism that makes participants in the part of the race against each other in order to add blocks and yield the transaction fees.
Summing up!
Although there are innumerable merits and demerits but in order to make it a handy approach, Fluper is trying hard to make this technology compatible on the screen with the help of possible mobile apps.
Whileblockchain database is quite expansive, there are few corners that are expected to pose serious challenges due to aforesaid reasons. So, it is high-time to understand the fact that blockchain technology is yet to prove its omnipresence.
Hence resources must be vested only after understanding its suitability in the near-future.
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Fluper Category: Mobile App Developers Profile: Fluper Ltd. is an authentic, certified and top rated mobile application design and development company with engineers expertising in native application development, customized applications provisioning end-end 360degree mobile app solutions. We have specilized in Android, iOS, iPad, Tablets and Wearable App Development Services. We have been working in the IT Mobile App Domain and Verticals since 2013 providing following services: #Enterprise Applications: Business, Banking, Finance, Human Reso ...
