Bitcoin and Ethereum the best thing is, the stock market. But even the most “perfect” projects has its drawbacks. Independent developer Stellar Carl Vitullo described in his blog, the three main problems of cryptocurrency, which can become a serious obstacle to their development in the next few years.
The time of Bitcoin transactions inexcusably long, one regular BTC transfer is recorded in the blockchain in about an hour. The developers of Bitcoin Core supports the generation of one block within ten minutes, but frequently a single transaction takes much more time. For comparison, the generation unit Ethereum takes up to 15 seconds.
In other words, Bitcoin is now almost no advantage in speed over conventional transaction payment card. The result is good and it is enough for applications by type Venmo or Square Cash. The Ethereum already much faster, but still bitcoin is too slow for instant payments.
Programmers a long time to “dig” in this direction. For example, special attention is being paid Lightning Network Bitcoin, and experts Ethereum the Ethereum Foundation is prepared to transition to Proof-of-Stake.
Too changeable nature of the prices of digital assets, making them unprofitable means of payment. The participants in the transaction with bitcoins much at risk, because for the time from 10 minutes to an hour — until a transaction of cryptocurrency, the price can dramatically change. This is why the gaming platform Steam has ceased to accept payments in the crypt of the almost 1.5 years ago.
High volatility also serves as an additional deterrent from carrying out transactions in General. If next week Bitcoin will rise, then why waste it now? If you paid in Bitcoin, whether to keep it until next week? What will be its purchasing power?
See also: Analyst CBOE: volatility of Bitcoin is lower than Amazon’s stock
Price volatility of digital assets has led to the emergence of a hybrid crypt and Fiat (tablconv). However, even the famous Tether were problems with the adoption of cryptocommunist.
What is the reason for the high volatility of the crypts? The fact that the majority of cryptoendoliths perceive Bitcoin and altcoins as a “digital action” that you want to buy cheaper in order to sell more expensive. The industry is still at an early stage of development and, therefore, any more or less serious news about the development of cryptoprocta significantly affect their value.
Vulnerability of smart contracts
Smart contracts are extremely popular in the Ethereum ecosystem. In theory, smartcontract open access to a range of decentralized applications. In practice, the dApps security often is at a very low level, so long as the Ethereum ecosystem can’t integrate things more serious Cryptokitties.
Yes, smartcontract is possible to use to confirm student diplomas, as this would acne Buterin. But what if one of these applications will find the critical vulnerability for which a degree will assign a completely different person?
See also: Smart contracts in the blockchain. What it is and how it works?
In code you can prevent dozens of holes and bugs. Even one of the most important updates Ethereum Constantinople had to move several times because suddenly the found errors of programmers.
Unfortunately, Bitcoin and Ethereum can not solve any serious problems in practice in the world. Vitullo came to the conclusion that the main cryptocurrency community now are working on their own personal needs. Hopefully, in the future this situation will change dramatically. And yet you have time to subscribe to our cryptcat.
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