What is missing to the blockchains to become mainstream? | by Minijump | Jan, 2024

Blockchain has the potential to alter how issues work in lots of areas, however there are issues holding it again from being broadly used. This text appears to be like on the fundamental explanation why blockchain isn’t mainstream but and what must be mounted. From points like scalability to coping with rules, determining these challenges is vital for blockchain to change into a daily a part of our digital world. Let’s discover what’s lacking and what’s already there for blockchain to change into extra well-liked and broadly accepted.

Graphs used on this article comes from a dashboard I created with dune.

1. Scalability

Scalability refers to a system’s means to effectively deal with elevated workload.

What’s the downside there? The issue is that if we wish to see decentralized finance, artwork, video games, … we are going to want a system that helps a huge variety of transactions. Let’s have a look at the next graph; it reveals the variety of weekly transactions accomplished on the Ethereum community. We see a peak in 2021, similar to the bull run. This peak has reached 10 million transactions. That’s rather a lot, for positive; nonetheless, it’s not near sufficient for those who search a decentralized world.

What does it imply? Is it a misplaced trigger? Will decentralization by no means happen? If we check with the definition of scalability, Ethereum solely wants to have the ability to scale to elevated workloads. We clearly see on the graph that the variety of transactions has risen since 2017, and we don’t even take into consideration Layer 2 options that now deal with a major quantity of transactions. Which means that even when Ethereum’s blockchain will not be adequate to satisfy all of the demand, we are able to hope to seek out future applied sciences that can assist obtain this objective.

That’s the place lies the fascinating level. Due to its structural interoperability, blockchain expertise is scalable. Bridges, sharding, rollups, Layer 2 options, and different applied sciences have emerged in recent times, enabling blockchains to handle an growing variety of transactions. You possibly can see on the graph beneath the variety of month-to-month transactions executed on…