Altcoin GuidesBitcoin GuidesEthereum Guides

4 Big Problems of Digital Currencies / Review and Analysis of Solutions

As blockchain-based digital currencies such as Bitcoin are growing and gaining popularity, the dream of absolute freedom is becoming more and more achievable. However, this development and popularity still needs to continue, and Bitcoin, the most popular, most valuable and most secure digital currency, still has a long way to go.

Virtual currencies

Although China’s blockchain technology has come a long way, it still needs to continue. There are four major issues with the Blockchain and digital currencies that have led some individuals and companies to prefer the traditional way despite the many problems.

Blockchain Development is one area where creativity and commitment never stop, and for this reason, many experts believe that these issues will soon be resolved:

1) Scalability

4 The Big Problem of Digital Currencies / Review and Analysis Solutions

Scalability: Increases capacity relative to transactions

When we talk about the problems of digital currencies, the first and most important word that comes to mind is comparability. The trading capacity of Bitcoin has been tested in recent months and the results have been promising.

Yes, the issue of scalability is a big problem, but the tensions and rumors about it are so bad that they lead to people’s fear and currency sales, competitive protocol changes, and confusion for new users.

Fortunately, this is the focus of developers, and the Plasma project we reported earlier will be available soon to address this issue.

Many developers have also shifted their focus to alternative blockchains designed with the latest technology and mass distribution.

2) Customer guarantee

4 The Big Problem of Digital Currencies / Review and Analysis Solutions

Ensuring currency stability and reducing buying risk is crucial

Earlier this month, the digital currency community was pleased with the bitcoin market value reaching PayPal. However, the issue of bitcoin market risk is still a concern.

Although Bitcoin has affected PayPal stocks, there are still 210 million users with PayPal accounts.

Given this, we need to know that the digital currency market is still an volatile market.

Therefore, people still use PayPal more than digital currencies, although the technology and security of digital currencies is much more advanced.

Two words: customer guarantee. This is simply not possible in the digital currency market.

If you want to buy something with Bitcoin, you either have to trust the seller completely or you have to connect to an additional intermediary that can prevent fraud.

Utrust CEO Nono Correa says his team is building a simple yet effective solution on a platform that allows users to easily and confidently, like PayPal, even more easily. Make your online purchases.

Asked how effective the platform is in applying digital currencies, Correa said:

UTRUST brings trust to digital currency customers. They will no longer feel a bit dangerous when shopping with digital currencies. “

3) Swing

Digital currency fluctuations

Digital currency fluctuations are very high, but so far most digital currencies have had positive annual fluctuations.

Bitcoin is no stranger to the word swing. Although volatility is part of the trade, it is not good for the currency sector at all.

This problem is directly related to the “customer guarantee” issue we talked about.

Merchants and customers are the two main components of any transaction, and although there are many bitcoins ready to use their bitcoins, traders are reluctant to take risks.

The system used in the Utrust platform can be very effective for more people to use digital currency, but it can not solve the problem of volatility.

However, projects such as Bitshares, Waves and Tether using Blockchain technology have provided us with tokens such as BitUSD, WUSD and USDT, respectively, which you can use at a fixed price. do.

4) Security

4 The Big Problem of Digital Currencies / Review and Analysis Solutions

The centralization of exchange offices has created a security gap in the digital currency market

This is not an important issue for digital currencies, as Blockchain projects have repeatedly passed proud security tests, but as digital currencies continue to rise, the issue of security must be addressed.

We are not talking about the number of scams and schemes designed to steal online wallets. Our discussion is about the security of exchange offices.

Exchange offices have become a gateway to the world of digital currency, and most people who want to enter the field of digital currencies have infiltrated exchange offices at least once.

But these same exchanges are a central weakness that violates the decentralized blockchain system.
The Bitfinex exchange has been hacked several times and BTC-e has been blocked for money laundering. Although these sites return stolen money, the problems of exchange offices can not be ignored.

The solution is for exchanges to be decentralized (DEX). Open source projects such as Bitsquare WavesDEX and BarterDEX entrust all transactions to users using a secure and guaranteed protocol, allowing them to conduct their business without the need to trust a third party entity, security and privacy. Do.

Source: cointelegraph


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button