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.
It is vital that issuers of cryptocurrency and developers of blockchain technology should agree on a single platform on which the distributed leger can be established. Doing will make transactions using the technology to be possible. Bitcoin issuing companies should also agree on a standard protocol to guide their system development. As a result, payment through bitcoins will become accepted by all businesses since it will be easy to convert cash to bitcoins and vice versa. This will also facilitate financial regulation.
Blockchain ensures that there is a productivity paradox in that a certain number of nodes are required to execute a task entirely. However, many nodes may attempt to complete a transaction but not end up contributing to the overall network. This means that there is a very high likelihood of wastage of system and network resources. If the nodes in the blockchain network were allocated to a different task, the chances are that they may have achieved higher throughput than in the blockchain technology.
There is the problem of data off-chain or data on-chain. No operations of blockchain technology are stored in their real form, for instance, the bitcoin derivatives store the hashed value or the digital fingerprints. It is hard to enforce business logic as well as permissions because business data permissions are not enforceable through tokens. The solution to develop systems that store information as digital signatures, which are only traceable to the person who carried out the transaction and the data should be kept in a different format.
However, although the blockchain technology can be compromised; its technical problems can be addressed. The regulators and users should not ignore the problems associated with the technology, for it will turn it into a bubble. Governments through their regulatory agencies should create a favourable environment to encourage collaboration amongst users and developers.
One of the solutions to security problems is that the services of blockchain should be provided to limited but verified parties to reduce cases of security breaches. The fraud from the verified parties will be prevented and detected by introducing an authentication process and protocols with the system. The regulators should push the DLT to use available solutions such as essential public infrastructure to safeguard the systems.
Additionally, the industry should agree to common cryptographic protocols between them. The security measures should be taken before a distributed ledger becomes fully functional. Such timing will ensure the solutions are proactive rather than reactive.
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.
It is vital that issuers of cryptocurrency and developers of blockchain technology should agree on a single platform on which the distributed leger can be established. Doing will make transactions using the technology to be possible. Bitcoin issuing companies should also agree on a standard protocol to guide their system development. As a result, payment through bitcoins will become accepted by all businesses since it will be easy to convert cash to bitcoins and vice versa. This will also facilitate financial regulation.
Blockchain ensures that there is a productivity paradox in that a certain number of nodes are required to execute a task entirely. However, many nodes may attempt to complete a transaction but not end up contributing to the overall network. This means that there is a very high likelihood of wastage of system and network resources. If the nodes in the blockchain network were allocated to a different task, the chances are that they may have achieved higher throughput than in the blockchain technology.
There is the problem of data off-chain or data on-chain. No operations of blockchain technology are stored in their real form, for instance, the bitcoin derivatives store the hashed value or the digital fingerprints. It is hard to enforce business logic as well as permissions because business data permissions are not enforceable through tokens. The solution to develop systems that store information as digital signatures, which are only traceable to the person who carried out the transaction and the data should be kept in a different format.
However, although the blockchain technology can be compromised; its technical problems can be addressed. The regulators and users should not ignore the problems associated with the technology, for it will turn it into a bubble. Governments through their regulatory agencies should create a favourable environment to encourage collaboration amongst users and developers.
One of the solutions to security problems is that the services of blockchain should be provided to limited but verified parties to reduce cases of security breaches. The fraud from the verified parties will be prevented and detected by introducing an authentication process and protocols with the system. The regulators should push the DLT to use available solutions such as essential public infrastructure to safeguard the systems.
Additionally, the industry should agree to common cryptographic protocols between them. The security measures should be taken before a distributed ledger becomes fully functional. Such timing will ensure the solutions are proactive rather than reactive.
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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