{"id":742,"date":"2018-10-17T09:53:16","date_gmt":"2018-10-17T13:53:16","guid":{"rendered":"https:\/\/www.amp.legal\/blog\/?p=742"},"modified":"2018-10-17T16:38:27","modified_gmt":"2018-10-17T20:38:27","slug":"scalability-slows-blockchain-rollout","status":"publish","type":"post","link":"https:\/\/www.amp.legal\/blog\/scalability-slows-blockchain-rollout\/","title":{"rendered":"Scalability Slows Blockchain Rollout"},"content":{"rendered":"

Greenwich Associates<\/a> released a report revealing that 57% of executives admit having challenges<\/a> with implementing distributed ledger technology (DLT), which uses blockchain. The report surveyed more than 200 executives that work in a variety of industries, including banks, exchanges, and dedicated blockchain companies. While most firms reported common technical issues with DLT such as confidentiality and security, 42% of firms\u00a0had a major issue with\u00a0scalability, which is the ability to process many transactions at high speeds.<\/p>\n

Forbes reported<\/a> that many of the firms in the Greenwich survey are waiting to implement their DLT transaction solutions. The firms that had DLT in production reported very slow transaction speeds. However, 2% of the firms reached a fairly high level of throughput with over 15,000 transactions per second.<\/p>\n

Richard Johnson, the author of the report, saw indications of future adoption. Johnson explained<\/a>, “We\u2019re beginning to see firms figure out how to get the blockchain to run fast and do a lot of transactions per second, and I think that\u2019s really encouraging.”<\/p>\n

\"BlockchainFaster Mining, Higher Fees<\/h3>\n

An article from CoinCentral,\u00a0What Are Blockchain Confirmations and Why Do They Matter?<\/em><\/a>, by Christina Comben, explains that users are paying more for faster transactions. Bitcoin\u2019s blockchain mining process creates a new block about every 10 minutes. But, to be confident about the transaction\u2019s validity, users must wait for the creation of each new block, which can take several hours depending on the amount sent.\u00a0This happens because miners pick out transactions with the highest fees to earn a\u00a0larger bonus.<\/p>\n

Transfers Like Text Messages<\/h3>\n

While many cryptocurrency networks are reliable, they still face issues with scalability. MintDice<\/a> reported that SovereignWallet promises to speed cryptocurrency transfers. The virtual wallet service allows users to transfer digital assets from their smartphones quickly like sending a text message. To create faster transactions, the service allows users to transact on a blockchain without needing third-party clearinghouses.<\/p>\n

Blockchain: Hope or Hype?<\/h3>\n

Jimmy Song, a Bitcoin Educator, refers to decentralized blockchain as the \u201cimmutable audit trail\u201d that is best suited for money. Song\u2019s article, Why Blockchain is\u00a0Hard<\/em><\/a>, lists several reasons why \u201ccentralization is a lot\u00a0easier.\u201d The reasons included:<\/p>\n