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The World According to Blockchain

  • The World According to Blockchain-

    Question: Can Blockchain Scale?

    The key to blockchain is that every node finds out about every transaction. That, however, leads to the challenge of keeping pace. Due.com calls bitcoin’s blockchain capacity "terribly limited." It can process 7 transactions per second (tps). The story juxtaposes that against Visa’s average of 2,000 tps and peak capacity of 50,000 tps. One answer is to increase the block size, in order to increase the space available and thus the speed. There are political challenges to doing so, however.

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The World According to Blockchain

  • 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11
  • The World According to Blockchain-4

    Question: Can Blockchain Scale?

    The key to blockchain is that every node finds out about every transaction. That, however, leads to the challenge of keeping pace. Due.com calls bitcoin’s blockchain capacity "terribly limited." It can process 7 transactions per second (tps). The story juxtaposes that against Visa’s average of 2,000 tps and peak capacity of 50,000 tps. One answer is to increase the block size, in order to increase the space available and thus the speed. There are political challenges to doing so, however.

A lot of confusion surrounds blockchain, the technology upon which bitcoin is built. Essentially, it is a platform in which transactions aren’t controlled or managed through a central node. Instead, it is a mesh. Every transaction is updated for everyone. If person A does business with person B, people C, D and E are all automatically updated.

This is a big conceptual change. It is also a big physical change, especially if the number of participants reaches into the millions. Juniper Research’s Blockchain Enterprise Survey for August 2017 showed that corporate understanding of blockchain grew during the past year, which is an assessment echoed by IT Business Edge’s Arthur Cole). Key findings: Fifteen percent of respondents know "very little" about blockchain, while 76 percent believe it could be "quite useful" or "very useful" for their firms.

At this point, blockchain comes with a cost: A bit over one-third, 35 percent, who are considering or actively deploying blockchain feel it will cause "significant internal disruption." More than half, 51 percent, who are considering or actively deploying blockchain feel it will cause "significant" disruption to their partners and/or customers.

Let’s look at where we are with blockchain and its potential.