Whether or not we’re ready for it, the growth of blockchain technologies is only going to continue expanding. Sources report that blockchain utilization is expected to grow more than 56% yearly through 2027. Even the growth of global mobile data traffic and consumer IP traffic is currently growing at much less than 56%.
The rise of blockchain has often been compared to that of the internet, but for many years, even among its first few years, the growth rate of the internet was less than 56% annually, in the same timeframe. And now for the $69 billion question — can our current infrastructure handle it?
In some ways, our current infrastructure and standard technology practices may not be set up to handle the increase in the utilization of blockchain technologies into the future. However, none of these issues seem to be unpreventable.
For example, the real-time nature of blocks being added to blockchains may require more uninterruptible forms of power supply (UPSes). That being said, UPSes are already commonplace in industries such as health care — and the technology for them is improving.
Houston, We Have Bigger Problems
A more discussed and significant issue concerning blockchain technology and our current infrastructure is blockchain’s relative lack of scalability compared to that of conventional databases. The issue lies in the way transactions are relatively slow — very slow — compared to traditional database-facilitated transactions because of some of the very qualities that make blockchain technologies so revolutionary. That is to say, dozens and even thousands of block producers, such as EOS block producers, verify transactions in an immutable and precisely limited way.
Unlike the centralized tech that makes up a database, blockchain has multiple agents validating the same transaction blocks rather than a single agent manipulating a single set of data. Furthermore, the blocks themselves are limited in size compared to the more unlimited record sizes allowed by databases, preventing more data in the same amount of code space from being handled in fewer actions.
However, even this major issue is being solved. For example, serverless cloud computing technology, involving multiple machines using code practices that are more on-demand than conventional ones, portends an impending solution to this problem with blockchain technologies. Furthermore, specific solutions are in working order now.
For example, the Lightning Network was created as a much faster alternative to conventional blockchain technology, by enabling acquainted users to set up a plan that allows a layer of technologically recognized trust integrated within the blockchain that provides faster transaction speeds. What’s more, Ethereum 2.0 — the platform’s highly awaited upgrade from proof-of-work to proof-of-stake — stands to create its own norm-busting solutions to scalability.
Also, the high amount of computing power needed to support blockchain technologies shouldn’t be an issue, as block producers take ownership by handling each crypto and token transaction on their own systems. Not only will companies not need to maintain so many on-premise servers in the future, but they also won’t need to pay for services provided by either in-house personnel or even cloud-based services as much.
Because of these savings, many smaller companies won’t need to have as much capital to start a blockchain-enabled business. Indeed, one of the main benefits of blockchain technology and decentralized finance (DeFi) itself require fewer costs in paying third-party intermediaries to verify transactions.
Database, Meet Blockchain. Blockchain, Meet Database. Let’s All Just Get Along.
One aspect of blockchain technologies that more stakeholders need to understand is the benefits of blockchain vs. those of databases, which is the norm for storing data. Blockchains can indeed do nearly everything that databases can. You can even make a to-do app, a typical programming use case, with blockchain technology.
Although databases have encryption processes built with them to secure code, there are many ways that database security can be compromised, considering how more vulnerable SQL database tables or even NoSQL documents are compared to the relatively simple, immutable, singularly-focused, locked-down code used in blockchain technologies.
While databases are more flexible with the kinds of actions that can be made on data through CRUD-based architecture — Create, Read, Update, and Delete — blockchain systems typically only do the Create (write) and Read actions, so their data cannot normally be altered or removed.
Also, because most of the programs we use that require persisted data need it to be alterable, updatable, and removable as well as created and read, databases and the client-server apps that interact with them provide more flexibility and functionality of features than do blockchain-based apps. Furthermore, databases are currently faster with app actions and transactions, at least until the yet-to-be mastered scalability problem of blockchain technologies is more definitively solved.
On the other hand, in terms of transparency, one of DeFi blockchain’s benefits — blockchain definitely rules the day. A database requires central administrators who have a lot of say over what you can do with your transaction data and who keep a lot of the transaction process hidden.
So will blockchains replace databases? It doesn’t seem likely, especially in this stage of blockchain technology development. Because both data storage paradigms have their own benefits and drawbacks, it comes down to the particular use case.
For example, databases are generally appropriate for platforms such as a social media network or other enterprises requiring fast, continuous flow of data without requiring dozens or thousands of verifications of the same piece of data, storage of confidential information, relatively less of a focus on validation of data, and detailed, complex, relational data.
In contrast, blockchain technologies are best for transfer value, storage value, monetary transactions, trusted data verification, voting systems, and the fluid, transparent, independent transacting that decentralized apps (dApps) allow. Moreover, there’s nothing that says a company can’t have both technologies working for them, each with its own advantages.
In any case, it will be necessary for managers and developers to investigate the benefits of tools made for either blockchain or database systems based on the individual needs of the department or enterprise.
Source: https://tinyurl.com/t68fnzus
While many of the changes necessary to accommodate blockchain critical infrastructure are unproblematic — or problems related to them are being solved — many sources agree that the mental and cultural assimilation of blockchain technology into people’s lives needs a lot of work.
Moreover, because of the growing recognition and use of blockchain technology’s benefits by governments worldwide, all businesses will need to be prepared to interface with the government on blockchain.
Luckily, though, many reliable sources are already advising businesses on what to do. For example, they recommend sharing the multiple benefits of blockchain technologies on the ecosystem level through business-to-business collaboration. After all, a platform that creates trust blockchain-encrypted signatures for transactions needs to agree on how a particular business is done.
The Learning Curve Is Rising but So Are the Learners — Along With the Pioneers Who Get It
Source: https://tinyurl.com/tu2ymry8
Although the lack of technical talent in blockchain technology poses challenges now, it won’t be like that for too long. Universities offering courses in blockchain are on the rise, even 25% in one year (2018). Moreover, most developers in a recent Stack Overflow survey said they were interested in developing with blockchain technologies themselves.
One DeFi leader who knows that the lack of technical talent is an issue but also it’s correctable is Marc Blinder, the CEO of AIKON. However, lack of tech talent is definitely not an issue when it comes to this company. One area of blockchain that it’s ahead of the game in is identity management.
AIKON’s ORE ID (a secure login tool for blockchain) is a flexible and straightforward but effective signup and login interface that allows users to access any DeFi blockchain platform in a variety of ways.
As blockchain technologies expand globally, so will the need for such robust but user-friendly tools to perform basic but essential functions to facilitate data access in an era still unfamiliar with using blockchain.
No matter what industry your enterprise is part of, blockchain technology has a lot to offer, and the game is already on. Don’t just build your company on the foundation of today — help build a foundation for your company’s future.