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Ethereum Explores A Fix For Blockchain's Performance Problem

Ethereum Explores A Fix For Blockchain's Performance Problem

Ethereum explores a fix for blockchain's performance problem The Ethereum Foundation is seeking outside developers to help solve a performance issue native to blockchain its inability to sufficiently scale. Use commas to separate multiple email addresses The creator of the open-source blockchain platform Ethereum is exploring ways to fix an innate issue with the technology - the inability for processing capacity to effectively scale. And the Ethereum Foundation is seeking outside developers to help solve the scaling problem. Ethereum and Hyperledger are the world's leading blockchain platforms and the basis for a myriad number of applications , from cryptocurrencies such as Ethereum's Ether to "smart" or self-executing online contracts . [ Related: The top 5 problems with blockchain ] While open and efficient because all transactions in the peer-to-peer distributed ledger technology can be seen in real time, one performance problem has been that every entry on a blockchain requires every node to process it . This has the potential to slow transactions such as payments. Due to its chain nature, each new record inserted into a blockchain has to be serialized, which means that the rate of updates is slower than traditional databases, which can update data in parallel. "This expensive and slow process is justifiable for a global network where all participants are potentially malicious," Bharath Rao, founder of Ethereum exchange Leverj, said in an earlier interview with Computerworld. "In a corporate environment, where all participation is controlled, it does not make sense to spend a lot of energy and time for essentially no additional benefit." While requiring all nodes (servers) to process each transaction makes blockchain natively resilient to cyberattacks as hundreds o Continue reading >>

Blockchain Scalability: When, Where, How?

Blockchain Scalability: When, Where, How?

Blockchain Scalability: When, Where, How? Angel Investors, Startups & Blockchain developers... Blockchain Scalability, a very real problem! Cryptocurrencies are becoming more and more mainstream. In fact, lets check out how popular bitcoin and ethereum have gotten over time. This is a graph of the number of daily bitcoin transactions tracked over the years: And here we have the number of Ethereum transactions per month over the years: Now, this may look very impressive, but here is the thing, the initial design of cryptocurrencies was not meant for widespread use and adaptation. While it was manageable when the number of transactions was less, as they have gotten more popular a host of issues have come up. The scalability problem of cryptocurrencies For bitcoin and ethereum to compete with more mainstream systems like visa and paypal, they need to seriously step up their game when it comes to transaction times. While paypal manages 193 transactions per second and visa manages 1667 transactions per second, Ethereum does only 20 transactions per second while bitcoin manages a whopping 7 transactions per second! The only way that these numbers can be improved is if they work on their scalability. If we were to categorize the main scalability problems in the cryptocurrencies, they would be: The time is taken to put a transaction in the block. The Time Taken To Put A Transaction In The Block In bitcoin and ethereum, a transaction goes through when a miner puts the transaction data in the blocks that they have mined. So suppose Alice wants to send 4 BTC to Bob, she will send this transaction data to the miners, the miner will then put it in their block and the transaction will be deemed complete. However, as bitcoin becomes more and more popular, this becomes more time-consu Continue reading >>

The 5 Big Problems With Blockchain Everyone Should Be Aware Of

The 5 Big Problems With Blockchain Everyone Should Be Aware Of

The 5 Big Problems With Blockchain Everyone Should Be Aware Of {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. {{article.article.magazine.subscription_text}} Blockchain is often touted as a world-changing technology and in many ways, it is. However, it isnt necessarily the cure-all panacea for the worlds problems that many evangelists would have you believe. Heres a breakdown of some of the issues with blockchain that anyone thinking of using it should understand. Starting with perhaps the biggest At least, the way it is being used today, it does. Blockchain relies on encryption to provide its security as well as establish consensus over a distributed network. This essentially means that, in order to prove that a user has permission to write to the chain, complex algorithms must be run, which in turn require large amounts of computing power. Of course, this comes at a cost. Taking the most widely known and used blockchain as an example Bitcoin last year it was claimed that the computing power required to keep the network running consumes as much energy as was used by 159 of the worlds nations . Yes, Bitcoins blockchain is a hugely valuable network with a current market capacity at the time of writing of over $170 billion so sophisticated and computationally intense security is essential. Smaller scale blockchains such as those that an organization may deploy internally to securely monitor and record business activity would consume a fraction of that. Nevertheless, its an important consideration and the environmental implic Continue reading >>

The Biggest Problem With Blockchain And How To Solve It, Illustrated

The Biggest Problem With Blockchain And How To Solve It, Illustrated

The biggest problem with blockchain and how to solve it, illustrated The biggest problem with blockchain and how to solve it, illustrated The biggest problem with blockchain platforms right now can be illustrated by a simple analogy. At the beginning of the 21st century, the internet was incredibly slow. If you had a blog back then, it would have been both time-consuming and expensive for users to access it. People noticed the problem, but they also recognized the usefulness of the internet. To resolve this, they worked on improving the internets infrastructure and design.At the same time, they built better hardware to run important elements of the internet as we know it today. Because of these changes, the internet became faster, and the costs of accessing websites became much lower. Before, developers were only able to create a single web page. But after the changes, developers could now build sites like Facebook, Google, and Twitter on the improved infrastructure. All this is possible because the internet is now very fast and scalable. At present, blockchain transactions face a similar hurdle: theyre slow and expensive. Blockchain companies are working to provide scalable infrastructure so that blockchain platforms can become mainstream in future. Once this happens, not only can people use blockchain for payment purposes, but they can also build applicationssimilar to Google and Facebook on top of them. Zilliqa is one of the companies seeking a solution to this problem. Tech in Asia sat down with Yaoqi Jia, head of technology at Zilliqa , to find out more. Blockchain and the problem of scalability The problem of scalability cannot be explained without first explaining the idea of throughput. Imagine you are at a train station. Trains here come in one-hour intervals, Continue reading >>

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchain Engineer. I have a passion for understanding things at a fundamental level and sharing it as clearly as possible. Blockchains dont scale. Not today, at least. But thereshope. The first Bitcoin paper was first released in 2008. My excitement about the potential of blockchain technology has been building ever since. Decentralized digital currency, once just a far-fetched goal, is finally making inroads into the mainstream. While thats exciting on its own merit, Im personally most excited about the potential for decentralized applications. Financial exchanges, prediction markets, and asset management platforms all carry enormous potential. The trustless systems supporting them are no less intriguing; identity verification systems, smart property, censorship resistant social platforms, and autonomous structures and governance models like DAOs . The most disruptive use cases probably havent even been dreamt up yet. But this dream still remains a dream for the foreseeable future while a few early enthusiasts and entrepreneurs are experimenting with building such applications, theres still a big missing piece that prevents us from seeing these applications come to fruition: scalability. Blockchains, as it stands today, are limited in their ability to scale. Thats not to say that this will be the case forever, but its definitely true today. In fact, Id argue its one of the biggest technological barriers we face with blockchain technology today. Its quickly become a very active area of research among researchers in the community and cryptocurrency in general. Currently, all blockchain consensus protocols (eg. Bitcoin, Ethereum, Ripple, Tendermint) have a challenging limitation: every fully participating node in the network must process every transaction. Recall that Continue reading >>

The Top 5 Problems With Blockchain

The Top 5 Problems With Blockchain

While blockchain holds the promise for reinventing business processes, it is still a nascent technology that continues to show vulnerabilities. Use commas to separate multiple email addresses Sign up now and get FREE access tohundreds of Insider articles, guides, reviews, interviews, blogs, and other premium content. Learn more . While blockchain appears ready to upend business processes and trust models across a myriad of industries, it's still in its early days and the various iterations of the distributed ledger already in use are far from vetted. While the technology has great potential,CIOs and their business counterparts who are exploring blockchain should expect setbacks in deploying it, including the real possibility of serious software bugs and risks posed by quantum computing, according to a new report from Forrester Research . Experts and analysts also warn that the technology isn't a fit for every transactional business process. For example, Bharath Rao, founder of Ethereum exchange Leverj , is skeptical of blockchain applications outside of cryptocurrencies; he argues that it's slower and more expensive to deploy than traditional transactional technologies such as a centralized relational database. "It pays for autonomy by sacrificing efficiency," Rao said, explaining that because records, or blocks, require cryptographic verification before new ones can be inserted, it can be inefficient for business applications that require speedy transaction settlement. To continue reading this article register now Continue reading >>

What Are Blockchain's Issues And Limitations?

What Are Blockchain's Issues And Limitations?

What are Blockchain's Issues and Limitations? There are treacherous passes in any technological revolution. Some people in the blockchain industry have pointed outthat blockchain has become overhyped, when, in reality, the technology has limitations and is inappropriate for many digital interactions. But through research and development, success and failure, and trial and error, we've learned the currentissues and limitations of blockchains. Blockchain technology involves an entirely new vocabulary. It has made cryptography more mainstream, but the highly specialized industry is chock-full of jargon. Thankfully, there are several efforts at providing glossaries and indexes that are thorough and easy to understand. Blockchains (like all distributed systems) are not so much resistant to bad actors as they are 'antifragile' that is, they respond to attacks and grow stronger. This requires a large network of users, however. If a blockchain is not a robust network with a widely distributed grid of nodes, it becomes more difficult to reapthe full benefit. There is some discussion and debate about whether this a fatal flaw for some permissioned blockchain projects. Bitcoin currently has notable transaction costs after being toutedas near free for the first few years of its existence. As of late 2016, it can only process about seven transactions per second, and each transaction costs about $0.20 and can only store 80 bytes of data. Theres also the politically charged aspect of using the bitcoin blockchain, not fortransactions, but as a store of information. This is the question of 'bloating' and is often frowned upon because it forces miners to perpetually reprocess and rerecord the information. If a blockchain is used as a database, the information going into the database nee Continue reading >>

19 Answers - Why Isn't The Size Of The Blockchain A Serious Problem For Bitcoin? - Quora

19 Answers - Why Isn't The Size Of The Blockchain A Serious Problem For Bitcoin? - Quora

Why isn't the size of the blockchain a serious problem for Bitcoin? While there are a few enthusiasts who are experimenting with building applications, there is still one missing piece of that puzzle and that is to be: scalability. What that means is that blockchains are limited in their ability to scale. Of course, this might not be going on forever but it is happening today. This is probably one of the greatest barriers to the technology that we face today. How many transactions are made are simply dependable of the actions of a single node that is taking part in the network. In fact, as more nodes are added to the network the weaker the blockchain gets. Similar to this, although bitcoin has a limit (and that is in theory) of 4,000 transactions per second, in practice it has about 6 to 7 transactions per second. But limitations like these dont apply for private blockchains. Private ones can achieve over 1000 transactions per second on Bitcoin . If you are asking yourself why that is the case, well, being in a private blockchain you can ensure that each and every node on the network uses a high-quality computer with strong bandwidth internet connection. Not to fool ourselves, this topic is extremely complex but I hope that this answers at least a little of the big-picture. If you are seeking a more expert advice, you should check out this website: DC FORECASTS ! Well, there indeed is a problem with the size of the blockchain. Not a serious one though. Why? Lets see: Bitcoin blockchain nodes are majorly of two types: A full node stores the complete blockchain ledger locally. Here, the size of the blockchain is a problem because the full node will have to store all the transactions that ever happened on the blockchain. The lightweight nodes or partial nodes dont store t Continue reading >>

Bitcoin, Blockchain, And The Trouble With Icos | Wired

Bitcoin, Blockchain, And The Trouble With Icos | Wired

Many cryptocurrency speculators are banking on the theory that someone dumber than them will buy their tokens for more than they paid. Thats a pretty good bet until it isnt. Ever since my friends and I set up a Digicash server to sell music and artwork with a digital currency called eCash representing real gold, back in the 90s, Ive been waiting for the day when cryptocurrenciesdigital currencies that operate independently of central banks by using encryption to generate units and verify transfers of fundswould transform the world. Cryptocurrencies are finally here, but not exactly in the way that I envisioned. And so since last year, Ive found myself issuing warnings instead of accolades about the latest trend in the frothy world of cryptocurrencies: ICOs, or initial coin offerings. The initial idea was a pretty good oneblockchain technology could be used to issue new cryptographically secure tokens or coins that are easy to transmit peer-to-peer. The coins could be sold to fund open-source software projects and other services that people find useful but are hard to finance with traditional structures. They could even function as shares and thus allow startups to finance themselves far more efficiently, from a broader range of people, and without the intermediaries that take fees and require a drawn-out process. Or the coins could represent some unit of utility, such as a gigabyte of storage or access to a network. Joi Ito ( @joi ) is an Ideas contributor for WIRED. Ito has been recognized for his work as an activist, entrepreneur, venture capitalist, and advocate of emergent democracy, privacy, and internet freedom. As director of the MIT Media Lab and a professor of the practice of media arts and sciences, he is currently exploring how radical new approaches to scie Continue reading >>

Bitcoin Has A Huge Scaling Problemlightning Could Be The Solution

Bitcoin Has A Huge Scaling Problemlightning Could Be The Solution

Sign up or login to join the discussions! Bitcoin has a huge scaling problemLightning could be the solution The Lightning network could enable much cheaper and faster bitcoin payments. Three startups are getting ready to launch one of the most ambitious and important cryptocurrency experiments since the creation of bitcoin itself. Called Lightning, the project aims to build a fast, scalable, and cryptographically secure payment network layered on top of the existing bitcoin network. Essentially, Lightning aims to solve the big problem that has loomed over bitcoin in recent years: Satoshi Nakamoto's design for bitcoin is comically unscalable. It requires every full node in bitcoin's peer-to-peer network to receive and store a copy of every transaction ever made on the network. Initially, that design was vital to achieving Nakamoto's vision of a fully decentralized payment network. But as Purdue computer scientist Pedro Moreno-Sanchez told Ars,it creates a big challenge as the network becomes more popular. "We have reached a point where it's not suitable any more to keep growing," he said. Lightning could offer a way out of this bind. It shifts routine payments outside of the blockchain, clearing away the most significant obstacle to bitcoin's continued growth. In fact, the Lightning project could potentially do much more than that. Lightning payments are expected to be faster, cheaper, and more private than conventional bitcoin payments. Proponents see Lightning as a new, second layer in the bitcoin software stack. They hope Lightning will expand the appeal of bitcoin in much the same way the Web helped the Internet go mainstream. The key ideas behind Lightning were proposed byJoseph Poon and Thaddeus Dryja in a 2015 white paper , but it's taken three years to translate Continue reading >>

Blockchain.info - Is Blockchain Down Right Now?

Blockchain.info - Is Blockchain Down Right Now?

* Times displayed are PT, Pacific Time (UTC/GMT 0) | Current server time is 20:47 We have tried pinging Blockchain website using our server and the website returned the above results. If blockchain.info is down for us too there is nothing you can do except waiting. Probably the server is overloaded, down or unreachable because of a network problem, outage or a website maintenance is in progress... Can't Access Blockchain - Troubleshooting Instructions If the site is UP but you cant access the page, try one of the below solutions: Force a full refresh for the site. This can be achieved by pressing CTRL + F5 keys at the same time on your favourite browser (Firefox, Chrome, Explorer, etc.) Clear the temporary cache and cookies on your browser to make sure that you have the most recent version of the web page. For instructions choose your browser : A Domain Name System (DNS) allows a site IP address (192.168.x.x) to be identified with words (*.com) in order to be remembered more easily, like a phonebook for websites. This service is usually provided by your ISP. Clear your local DNS cache to make sure that you grab the most recent cache that your ISP has. For Windows - (Start > Command Prompt > type "ipconfig /flushdns" and hit enter). For details choose your operating system : If you can access a website at office or from a 3G network yet it's not working on your computer, it is a good idea to use an alternative DNS service other than your ISPs. OpenDNS or Google Public DNS are both excellent and free public DNS services. Check our help page for step-by-step instructions on how to change your DNS . Having Problems with Accessing Blockchain.info? Is Blockchain.info down for you right now? Submit your comments about Blockchain.info service status or report an issue below to Continue reading >>

News - Bitcoin News

News - Bitcoin News

Coinsource Adds 18 Bitcoin ATMs in Atlanta, Among Ten Most Unbanked US Cities The Texas-based bitcoin ATM network, Coinsource has deployed 20 new machines in the state of Georgia, marking its single largest installation to date. 18 bitcoin ATMs have been installed in the city of Atlanta, and 2 machines in the nearby college town of Athens.Also Read: NYU Plans to Launch an Undergraduate Course in CryptocurrenciesThe company's CEO Sheffield Clark said, This is a major opportunity... Japan Increases Lead Approves Another Four New Cryptocurrency Exchanges The Japanese Financial Services Agency has approved four more cryptocurrency exchanges to legally operate in Japan. This is the second round of approvals by the agency; the first was for 11 exchanges in September.Also read:No Regulation Needed Moscow Stock Exchange Plans to Trade Bitcoin FuturesMore Crypto Exchanges Approved by FSAThe Japanese Financial Services Agency (FSA) has posted on its website the details of... Bitcoins Price Rocket is Bringing Out New Prophets of Doom: Nobel Economist, Vanguard Founder, Fed Governor Curiously, bitcoin's success has brought out new prophets of doom (few below 60 years of age though), and the digital asset's price only fuels their predictions: Nobel Prize-winning economist wants it outlawed, a legendary investment guru says it's a plague, and a Federal Reserve Governor worries financial stability itself might be at risk.Also read:Egypt Finance Attorney General Calls for International Governance of BitcoinNobel Economist... Bitcoin Cash Network Status: Transactions On the Rise The Bitcoin Cash network is trucking along as the blockchain is currently finishing up its fourth month of existence. As more adoption and infrastructure support has been added to the BCH network over the past Continue reading >>

The Truth About Blockchain

The Truth About Blockchain

Contracts, transactions, and records of them provide critical structure in our economic system, but they havent kept up with the worlds digital transformation. Theyre like rush-hour gridlock trapping a Formula 1 race car. Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently, and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more internet technologies, blockchains adoption will require broad coordination and will take years. In this article the authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it. Weve all heard that blockchain will revolutionize business, but its going to take a lot longer than many people claim. Like TCP/IP (on which the internet was built), blockchain is a foundational technology that will require broad coordination. The level of complexitytechnological, regulatory, and socialwill be unprecedented. The adoption of TCP/IP suggests blockchain will follow a fairly predictable path. While the journey will take years, its not too early for businesses to start planning. Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems. They protect assets and set organizational boundaries. They establish and verify identities and chronicle events. They govern interactions among nations, organizations, communities, and individuals. They guide managerial and social Continue reading >>

Evolution Of Cryptocurrency: The Problem With Money Today

Evolution Of Cryptocurrency: The Problem With Money Today

Evolution of Cryptocurrency: The Problem With Money Today A 3-part series that looks at the evolution of money and Cryptocurrency By Bryan Chia No responses Home Cryptocurrencies Evolution of Cryptocurrency: The Problem With Money Today This is the first of a 3-part series that takes a look at the evolution of cryptocurrency and the problem with money today. The 1st part of this series of articles addresses the multiple failures of money today , while the 2nd part explains how cryptocurrencies address these issues and rectify them . Part 3 is an inside look at the strengths of cryptocurrencies over traditional money and what the future holds for both . This series of articles is intended for beginners with zero knowledge of economics, finance and crypto. Cryptocurrency, or crypto as it is often referred to, is the answer to a long-standing problem with finance and money. What problem?you ask.Ive got no problem with money at all today apart from not having enough of it. The problem with fiat money is that itrewards the minoritythat can handle money, butfools the generation that has worked and saved money. But the matter of fact is youdohave a problem with it. You do, I do and everyone else does but weve become so accustomed to thats the way its always been done that weve become blind to its flaws. In order to understand the value proposition of cryptocurrencies, we first need to understand these specific problems they solve. (Read more: 4 Reasons Why Now is the Best Time for You to Invest in Cryptocurrencies ) Modern finance is broken. Just ask any banker you know if he understands where does the currency of his country get its value from. The US dollar, the gold standardof foreign currency holdings, used to be pegged to actual gold bullion held by the US Treasury; ther Continue reading >>

Blockchain: From The Problems To Solutions.

Blockchain: From The Problems To Solutions.

Blockchain: from the problems to solutions. Blockchain technologies are gradually gaining universal recognition. During 8 years of its existence there was only one bug in 2010 so there is no surprise that different companies are seeking ways to integrate it for their needs. Bitcoin was the first manifestation of blockchain and even those who hate Bitcoin(for example, CEO of JP Morgan Chase Jamie Dimon) understand its benefits. However, are there any disadvantages of this technology? Lets take a look. There are many different blockchains today: Bitcoin, Ethereum, Ripple, BitShares, IOTA, HyperLedger, RChain etc. The first two are the most popular but both have a problem with scalability. The Bitcoin network is able to confirm 7 tx/s (transactions per second) maximum and the Ethereum network 15 tx/s. Confirmation time in the Bitcoin network is fixed and accounts to 10 minutes. Confirmation time in the Ethereum network was 14 s in April 2017 but today it is 29 s. It has increased because the Ethereum network is in a huge demand now, mostly due to lots of ICOs, that run on this blockchain. So, both of the heavily loaded networks have a problem related to full blocks, which triggers a problem of high fees. Can these problems be solved? To the Bitcoin blockchain, Segwit added the function of supporting fast off-chain transactions via Lightning Network and possibility to increase block size up to 4 Mb. However, Lightning Network is currently in a beta state and is not being massively used yet, while 4 Mb blocks are not increasing tx/s radically, plus there is still 10 minutes confirmation time limit. By the way, right now, it is only 7% of all Bitcoin transactions that are Segwit-flagged. Ethereum also tries to deal with the scalability problem through its hardforks Byzantium Continue reading >>

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