Cryptocurrencies have taken the world by storm as it is evident with the rise in its popularity since the year 2010. The blockchain is the technology used for bitcoins. It is a technology of decentralization of transactions as well as data management. The system is more secure, completely anonymous and provides the highest level of data integrity based on the fact that no third party can control the transactions eliciting unique research interest. However, there is the need to promote cryptocurrency trading for beginners.
However, there are some technical challenges that face Blockchain technology particularly for the novice traders. From a personal point of view, the complexities of blockchain technology are just as any new technology faces challenges during its initial stages of developments and adoption. Most of the difficulties are because the technology is yet to be adopted on a larger scale and is yet to be recognized by financial regulators.
Additionally, blockchain technology faces the problem of scalability. The distributed ledger technology can only support seven transactions per second as opposed the financial service which accommodates at least 2,000 operations per second. Consequently, the bitcoin system cannot perform certain financial transactions such as post-trade transaction processing that need at least transactions processing in hundreds.
Such scalability problem is a result of a characteristic of the system which requires data to be propagated on a strict sequence to all the nodes in a network, and the use of data mining technology to verify all information. As a solution, the developers of the various TLPs should find a way to restrict the data propagation approach. This will also address privacy problems by ensuring only the parties to a transaction can view the data.
Additionally, the storage of information should be in such a way that business logic is enforceable. Financial regulators should accept bitcoins as a currency. This will make sure that all the transactions across the DLT are effaceable. The regulators have not adopted the system because it is complicated and they have not established ways through which they can control it by imposing regulations. Additionally, most of the cryptocurrencies are issues privately and across different jurisdictions. Coordination between the regulators and the issuer of bitcoins is therefore necessary.
Partnership between users and developers will create a common platform on which developers can build their system to ensure interoperability. With proper regulations, cryptocurrency can succeed in the end. The blockchain can become a financial bubble and suffer extinction if the technical problems are not solved.
There the need to enhance education on cryptocurrency trading. Other than the complexity of the exchange of these public and private keys, a majority of the people do not understand how they can go about traversing through the steps to ensure that they acquire the bitcoin itself. Standard databases are easy to comprehend, but they differ from those that are implemented using the blockchain technology.
Developers should be equipped with tools that accommodate work on top of the Blockchain technology. These programs will work the same way C++ and Java operate which are quite mature and develop robust solutions in combination with other technologies.
However, there are some technical challenges that face Blockchain technology particularly for the novice traders. From a personal point of view, the complexities of blockchain technology are just as any new technology faces challenges during its initial stages of developments and adoption. Most of the difficulties are because the technology is yet to be adopted on a larger scale and is yet to be recognized by financial regulators.
Additionally, blockchain technology faces the problem of scalability. The distributed ledger technology can only support seven transactions per second as opposed the financial service which accommodates at least 2,000 operations per second. Consequently, the bitcoin system cannot perform certain financial transactions such as post-trade transaction processing that need at least transactions processing in hundreds.
Such scalability problem is a result of a characteristic of the system which requires data to be propagated on a strict sequence to all the nodes in a network, and the use of data mining technology to verify all information. As a solution, the developers of the various TLPs should find a way to restrict the data propagation approach. This will also address privacy problems by ensuring only the parties to a transaction can view the data.
Additionally, the storage of information should be in such a way that business logic is enforceable. Financial regulators should accept bitcoins as a currency. This will make sure that all the transactions across the DLT are effaceable. The regulators have not adopted the system because it is complicated and they have not established ways through which they can control it by imposing regulations. Additionally, most of the cryptocurrencies are issues privately and across different jurisdictions. Coordination between the regulators and the issuer of bitcoins is therefore necessary.
Partnership between users and developers will create a common platform on which developers can build their system to ensure interoperability. With proper regulations, cryptocurrency can succeed in the end. The blockchain can become a financial bubble and suffer extinction if the technical problems are not solved.
There the need to enhance education on cryptocurrency trading. Other than the complexity of the exchange of these public and private keys, a majority of the people do not understand how they can go about traversing through the steps to ensure that they acquire the bitcoin itself. Standard databases are easy to comprehend, but they differ from those that are implemented using the blockchain technology.
Developers should be equipped with tools that accommodate work on top of the Blockchain technology. These programs will work the same way C++ and Java operate which are quite mature and develop robust solutions in combination with other technologies.
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