Blockchain is erupting out as the technology of the future on the global scale. In the last 2 years alone, a lot of developments have been made in this world and a lot of investment is flooding into this world currently. The decentralized aspect of this technology has made it stand out among the rest. But moving into 2019, what should we expect regarding this arena?
The blockchain world is still in its nascent phase. It has a lot of shortcomings associated with it as of now. Issues like scalability have seriously affected the operations related to this world. While VISA can handle thousands of transactions per second, the networks of bitcoin and ethereum are able to handle much less than this. If this world is to gain large-scale adoption of cryptos, this issue of scalability needs to be solved as soon as possible.
In 2019, the blockchain world is expected to see game-changing developments. Besides the utmost important issues of scalability, developments also need to be made in the arena of the user data protection. Many solutions have already been proposed for securing user identity. Implementations of zero-knowledge proofs are springing up with each passing day, but the widespread adoption of these is still not visible. In 2019, it is likely that the work regarding this aspect will accelerate.
Consensus algorithms will also be something to look out for in 2019. The most commonly employed consensus algorithm in the crypto world is Proof-of-Work (PoW). PoW currently underlies both the networks of bitcoin and ethereum. PoW essentially has a lot of overheads associated with it. Miners involved in the process have to use a lot of electricity and a lot of this electricity comes from coal-based sources. This is contributing to the degradation of our ecosystem overall. The need of the hour is to devise a better consensus algorithm than PoW that is faster and more eco-friendly. Proof-of-Stake (PoS) is an algorithm that is being proposed by many in this space as an alternate to PoW but it is not immune from the aspect of centralization as well. If you stake more, you get higher rewards. A policy that seems to favor the rich.
2019 will be an interesting year in the crypto and blockchain world. With hardcore developers out on the hunt to find solutions to the problems of scalability, user data protection, consensus etc., let’s see how things unfold in this world and what new innovations are brought.
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