Blockchain technology and cryptocurrency were first put on the world’s radar after the launch of Bitcoin in 2009. Even at the time, the concept of cryptocurrency and the associated blockchain technology was somewhat foreign, and it only became a hot topic and the buzz of conversation in more recent years. As it has become more common and understood, the use of cryptocurrency and the development of blockchain technology have expanded and developed. Blockchain technology not only has a variety of uses and capacities now, but it also has the potential for continued development and an even wider range of applications.
Because it functions as a decentralized digital ledger that records and cryptically stores records and transactions, blockchain information can be shared with anyone but cannot be corrupted. These attributes make it extremely useful in a variety of settings, and blockchain technology has already affected various industries including healthcare, transportation, retail, and many others.
Blockchain technology can be used to create and enforce smart contracts, share data with anyone in the world to study and continue to build, and much more. Despite its wide range of uses, blockchain technology does present a number of the problems.
The Problems with Blockchain Technology
As blockchain technology has developed and is becoming integrated into different businesses, a number of problems and concerns have cropped up. Some of the biggest problems with blockchain technology today include:
- Complexity. Blockchain technology is somewhat complex and has its own unique vocabulary. Although it’s becoming more mainstream, there’s still a lot of associated jargon users have to learn.
- Privacy. Although blockchain technology offers anonymity and security, web trackers and cookies have been used in investigations to track down identities, proving that blockchain is not as private as it may seem.
- Available tools. For a developer to do his or her job effectively, they need the right tools. Unfortunately, the tools currently available for developing blockchain still need some work. Some tools are adequate, but developers still lack everything they need to be most effective.
- Scalability. Current blockchain technologies are not set up for mass scalability, limiting the number of transactions that can be processed and extending the amount of time it takes to process them.
- Decentralization. One of the main benefits of blockchains is that they are decentralized, or at least meant to be. Despite the goal of decentralization, though, many blockchains and cryptocurrencies are secured by centralized networks.
The Company with the Solutions
The problems blockchain technology faces have been limiting, but one company, Constellation Labs, has some solutions to tackle these issues head-on and continue to develop blockchain technology for future use. The team behind Constellation Labs recognized the problems blockchain technology currently faces and how they will affect the future, and they came up with solutions that will revolutionize the way blockchain technology is approached.
Constellation Labs has created a blockchain microservice operating system designed to solve the blockchain technology problems we face. “Current blockchain technology such as Bitcoin, Ethereum, and others have systemic synchronous limitations that render them unsuitable for mass adoption into the current technical architecture of distributed consumer applications,” the Constellation Labs team explains. “Consensus mechanisms and smart contract architecture cannot scale to a level that is required for consumer grade applications to function.”
As a solution to this issue, Constellation proposes a fault-resistant, horizontally-scalable, distributed operating system. This would help eliminate the scalability issues blockchain technology currently faces and make it faster and simpler for the nodes in the blockchain system to communicate. Their solution would not only allow for mass scalability but would also improve the amount of time it takes for transactions to be processed and recorded.
Scalability isn’t the only blockchain technology issue that Constellation aims to solve, of course. Decentralization is another concern blockchain technology is facing these days, despite the fact that it has always been one of the main purposes of the tech. According to Constellation Labs, “Despite the goal of decentralization, cryptocurrencies are operated and secured by increasingly centralized networks and mining organizations that control the security of the network… While diverse and creative implementations of these distributed protocols exist, they are siloed from existing mainstream software and, as such, there is a high barrier to entry.”
Blockchain technology already offers so many benefits and has revolutionized virtually every industry, but it could still use some refining. Additionally, blockchain technology is still limited, but Constellation intends to change that by improving the technology and making it more widely applicable and available. “We presented a reformulation of cryptographically secure consensus into modern serverless architecture that will allow mainstream applications to use blockchain technology,” they share.
Despite the problems holding back blockchain technology, companies like Constellation Labs see all the potential it has and are working to unleash it.
What do you think is the biggest problem with blockchain technology? What difference do you think it’ll make when that problem is overcome?Opinions expressed here by Contributors are their own.