The current blockchain architecture has high energy consumption and also has scaling problems. The main problem is that all transactions on the blockchain must be processed by basically everyone and everyone must have a copy of the global ledger. Is blockchain technology really the best for those who demand transparency? Both the Proof of Identity and Proof of Stake methods can succumb to a 51 percent attack. We'll talk about the third method, Proof of Work, in a moment.
For now, let's talk about how transparency can be counterproductive. When working in a commercial environment, total transparency is not ideal, as it allows participants to see what each member is doing in real time. If you think transparency is the strength of the blockchain, wait until your medical records are stored in a blockchain-based medical facility. At least, the way it's used today, it does.
Blockchain relies on encryption to provide its security and establish consensus on 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 executed, which in turn require large amounts of computing power. Of course, this comes at a cost. Taking as an example the most well-known and widely used blockchain, bitcoin, last year it was stated that the computing power required to keep the network running consumes as much energy as that used by 159 of the world's nations.
Web, SEO & Social Networks by 123 Internet Group. Blockchain promises to solve this problem. The technology at the heart of bitcoin and other virtual currencies, blockchain is an open and distributed ledger that can record transactions between two parties efficiently and verifiably and permanently. The ledger itself can also be scheduled to automatically trigger transactions.
See the sidebar “How Blockchain Works. INBLOCK issues the Metacoin cryptocurrency, which is based on Hyperledger Fabric, to help make digital asset transactions faster, more convenient and secure.
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