How can we overcome the challenges of blockchain to operate it's full potential?

[B-BossMan]

I don't know if there have been solutions provided to some challenges of blockchain; here is some overview of the challenges from my research and studies as a newbie.

1. Scalability
If the blockchain network processes a large number of transactions per second, we refer to it as scalability. From my research, I see some points as big challenges to blockchain, like if the network got congested, there would definitely be high transaction fees, and scalability issues can limit widespread adoption of blockchain technology.
2: Regulation
This is also one of the significant challenges blockchain technology is facing because a lack of clear regulations can lead to confusion among the investors and other businesses, and if the government cannot regulate the blockchain and cryptocurrencies, it can also result in reputational damages and penalties; the risk keeps increasing.
3: Consumption of Energy
An example is bitcoin, which uses or requires a significant amount of energy to power its operations. The consumption of this energy can lead to a limitation of scalability, as the network may not be able to perform a large number of transactions.
4: Complexity
If the blockchain technology is complex and difficult to understand can leads to adoption because individuals and businesses can not continue invest in something they are not understanding fully and complexity can also lead to errors and risks, the increase of high risk and errors can cause reputation damages and financial losses.

My question is How can we overcome these challenges of blockchain to operate it's full potential ?


Thank you'll for encouraging me to learn more.

[pooya87]

1. Scalability

There are various ideas to solve this but nothing has gained traction enough to be called a solution. For the time being the most popular idea is that as long as there is "blockchain" we can't scale enough to handle all transactions and still remain decentralized, so there has to be a second layer like LN. But that idea has its own flaws as well.

2: Regulation

That is not exactly a blockchain related problem though. In fact it can be called quite the opposite. Because the whole idea introduced by bitcoin, as the first real implementation of the blockchain technology, is to be decentralized meaning not-regulated or not-caring-about regulations.

3: Consumption of Energy

There are various ideas for this as well. From the very old and very flawed PoS algorithm all the way to the newest proof of somethings that have come out like Proof of Burn and Proof of Activity, etc. Nothing solid has come out yet though.

The consumption of this energy can lead to a limitation of scalability, as the network may not be able to perform a large number of transactions.

It has nothing to do with scalability. The block space which is the only thing limiting scaling, is still finite whether you are spending a lot of electricity to mine it or no electricity at all.

4: Complexity
If the blockchain technology is complex and difficult to understand can leads to adoption because individuals and businesses can not continue invest in something they are not understanding fully and complexity can also lead to errors and risks, the increase of high risk and errors can cause reputation damages and financial losses.

Do people who buy apple products or its stock understand how an iPhone works? No, they see its utility and know how to use it so they buy it. Do people who buy gold understand how it is produced (from extraction to smelting and purification)? No, but they still buy it.

Why should Bitcoin be any different? Regular people who want to use bitcoin or invest in bitcoin do not need to know how it works. They just need to know how to use bitcoin which is a simple thing.

[MusaMohamed]

1. Scalability
If the blockchain network processes a large number of transactions per second, we refer to it as scalability. From my research, I see some points as big challenges to blockchain, like if the network got congested, there would definitely be high transaction fees, and scalability issues can limit widespread adoption of blockchain technology.

Many altcoin blockchains with very big block sizes but they don't have too many users and altcoin blocks are not full. People are intelligently enough to choose good blockchains to use, it's Bitcoin blockchain.

2: Regulation
This is also one of the significant challenges blockchain technology is facing because a lack of clear regulations can lead to confusion among the investors and other businesses, and if the government cannot regulate the blockchain and cryptocurrencies, it can also result in reputational damages and penalties; the risk keeps increasing.

Governments if read your post, will like it, because they love regulations. I can use Bitcoin blockchain without scams, and I don't need regulations from governments to achieve it. People are scammed because they are careless and regulations from governments can not help these people.

Regulations damage our privacy while with careful people, they are not victims of scammers, so why do they need regulations that destroy their privacy.

3: Consumption of Energy
An example is bitcoin, which uses or requires a significant amount of energy to power its operations. The consumption of this energy can lead to a limitation of scalability, as the network may not be able to perform a large number of transactions.

Debunk this fud against Bitcoin blockchain.
Debunking the "Bitcoin is an environmental disaster" argument
https://endthefud.org/energy

4: Complexity
If the blockchain technology is complex and difficult to understand can leads to adoption because individuals and businesses can not continue invest in something they are not understanding fully and complexity can also lead to errors and risks, the increase of high risk and errors can cause reputation damages and financial losses.

It's not complex. People lose money because they are careless, not because of blockchain complexity.

[Mia Chloe]

Firstly Op from your write up the main point here that I believe is directly related to the Blockchain or bitcoin to be precise is scalability. The bitcoin network once had it as an issue in the past where congestion became a problem to be fixed quickly as at around 2017 - 2018. That was when adoption rate increased exponentially and it was fixed via the SEGWIT fork and the implementation of lightning networks off chain for smaller transactions.

Bitcoin is not regulated by a particular body like pooya87 stated and that's because it's a decentralised network and regulations go against the concept. Also, energy consumption is not a problem it's more of a situation. Back in the days bitcoin could be mined with the GPU of your regular gaming PC simply because of the difficulty level back then.

[ABCbits]

3: Consumption of Energy
An example is bitcoin, which uses or requires a significant amount of energy to power its operations. The consumption of this energy can lead to a limitation of scalability, as the network may not be able to perform a large number of transactions.

Your statement very so wrong. Bitcoin mining doesn't require tons of energy, which proven by low hashrate/energy in the early days. In addition, there's no correlation between energy and scalability (or rather TPS) since TPS affected by block size limit.

4: Complexity
If the blockchain technology is complex and difficult to understand can leads to adoption because individuals and businesses can not continue invest in something they are not understanding fully and complexity can also lead to errors and risks, the increase of high risk and errors can cause reputation damages and financial losses.

Average people don't have to understand blockchain in order to use it, they just need friendly way to use or interact with blockchain.