• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Breaking News: Breaking: Digital Currency Group (DCG) Pulls The Plug On TradeBlock: The End Of An Era?
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: Digital Currency Group (DCG) Pulls The Plug On TradeBlock: The End Of An Era?
BBC crypto blockchain
Advertisement

Did the BBC Just Call Blockchain Vaporware?

Ricardo Martinez by Ricardo Martinez
3 years ago
in News, News teaser
0
Advertisement
Advertisement

Blockchain has been promised to disrupt a multitude of industries by disintermediating trusted third parties in a variety of roles, across many different businesses. The problem is, it’s been almost ten years since blockchain’s inception, and it still hasn’t disrupted much of anything.


Is it all smoke, mirrors, and marketing buzzwords?

Blockchain technology was championed as a way to use trust-minimized decentralized networks to end reliance on trusted third parties, safely store data with encryption, keep immutable records, transact financially without banks, audit information, track goods across supply chains and just about anything else you can think of.

Claim the JACKPOT with 55 FREE SPINS. Signup today to redeem your bonus.

The problem is, as the BBC has noted, that blockchain has failed to live up to its promised potential. It hasn’t really been used for much except for Bitcoin and other cryptocurrencies. The problem is that during the ICO bubble of 2017, blockchain was marketed as a cure all for any problem in every industry. Blockchain became a solution in search of a problem.

Much of that marketing sounded good, but isn’t too accurate about the realities of Blockchain, its usefulness and the capabilities and limitations of the technology itself. Many projects that employ smart contracts in attempts to achieve trust-minimization, are not sufficient by themselves.

For example, if we have a blockchain to store property deeds, health records, college degrees, online voting records, tokenized securities, or track goods along a supply chain, you still need to trust that the information entered into the blockchain system is accurate.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

It doesn’t help to keep immutable trustless records of invalid or inaccurate information. Another issue, is even if the records for a house sale are kept on the blockchain, how do you ensure that the house’s owner actually gave up ownership to the purchaser in the real world?

How can a distributed database, which nobody controls, enforce the terms of a smart contract?  The simple answer is it can’t.

Blockchain may have other use cases, but first the oracle problem must be solved

One of the major limitations of blockchain implementation and industry-wide disruption is the blockchain oracle problem. It’s sort of a catch-22 that limits the kinds of problems smart contracts can solve.

A blockchain is supposed to be a trustless and decentralized system, however for smart contracts to function correctly they often need real world data, like price info, if an item was sent or received, if a patient had a certain treatment applied, etc.

This important information that the smart contract needs in order to function properly has to come from somewhere, like a trusted-third party, who has vetted the data. This reintroduces trust, to the system which has been designed for trust-minimization, defeating the purpose of the blockchain in the first place.

blockchain

The other major limitation is scalability issues. The way blockchain keeps immutable records, is every node connected to the network keeps a copy of the ledger, and then a consensus is reached by the nodes to determine the true version of the ledger.

The fact that every node needs to keep a large amount of data, makes the demands for running a node, heavily resource intensive. This limits the amount of throughput the nodes can validate, slowing the performance of the blockchain.

Blockchains simply can’t compete with centralized alternatives in most cases, that don’t require trust-minimization. The trade off is a slow performing, but secure, decentralized and immutable blockchain, or a fast, efficient and centralized database, like traditional web services use.

Unless you need decentralization and security for trust-minimized censorship-resistant transactions, like cryptocurrencies do, then it is probably much better to simply use MySQL and Amazon Web Services to offer a better user experience.

What do you think, is blockchain all hype? Let us know in the comments!


Images via Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Ricardo Martinez

Ricardo Martinez

Related Posts

Crypto.ro and Binance Unveil the 3rd Binance Meetup in Romania, Set in Timisoara

Crypto.ro and Binance Unveil the 3rd Binance Meetup in Romania, Set in Timisoara

5 days ago
Gemini

Gemini To Launch Non-US Crypto Derivatives Platform

1 month ago
Nasdaq

Nasdaq Targets Mid-2023 For Crypto Custody Launch

2 months ago
Crypto.Com Became The10th Largest BONE Holder

Crypto.Com Became The10th Largest BONE Holder

2 months ago
Hong Kong

Hong Kong Set To Welcome Prominent Crypto Data Firm

2 months ago
crypto conference the alliance

Crypto.ro Announces “The Alliance,” a Highly Anticipated Crypto Conference in 2023

3 months ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit
1xBit
1xBit
K8
K8

Press Releases

  • Is Betting About to Be Transformed by the Blockchain?...

    5 hours ago
  • Traders Foresee Significant Price Upswing for DigiToads...

    5 hours ago
  • 3 reasons why Inqubeta (QUBE) Sale Draws Attention from...

    5 hours ago
  • Chiliz and Stacks price struggles as Tradecurve expects a...

    9 hours ago
  • JP Morgan working on AI as Tradecurve already thinking...

    9 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.