Technical Performance Flaws
In a blockchain, as the name implies, the data is added to the ledger as blocks, each with its unique digital signature and timestamp, connected to the previous block. The data stored in each block is potentially unalterable unless the previous is changed which requires permission from a majority of the users. This is the biggest flaw of any blockchain network and is termed as the “51% attack” by Satoshi Nakamoto. If the majority of users agree to something then it can be implemented in a blockchain network making it prone to cyber-attacks. To counter these, blockchain networks are open, i.e any computer can be a node in the network and each network has an insane number of nodes, destroying any potential 51% attack.
The encrypted distributed nature of blockchain makes it very slow, and overly dependent on the computing power of the network. Bitcoin transactions can sometimes take up to several hours to complete. Even the fastest blockchain networks a couple of years back could only complete a few transactions in a second. The best solution to this is the implementation of a Next-Gen High-Throughput Platform. Zilliqa is the most prominent in the long line of companies that are adopting this method to optimize their blockchain networks. The transaction throughput increases with an increase in the size of the network and inbuilt sharding improves and puts Zilliqa in the same league as Mastercard and Visa. Zilliqa can process hundreds and thousands of transactions in a second. Several other solutions to this include platforms like Ethereum and Aerum and technologies such as DAG (Directed Acyclic Graphs).
Blockchain – Into the Future
Accounting, transactions, contracts, and records play a pivotal and defining role in our societal system. They protect assets, and organizational boundaries and uphold the promises between institutions, governments, and corporations. Despite their importance, these have failed to digitize in ways other sectors have. Blockchain technology offers a solution to this. But the touted revolutionary technology is much more than just this and we are yet to realize its limitless potential.