The Biggest Issues in Development of Blockchain and Its Features [2019 Forecast]
In the last decade, cryptocurrencies, and blockchain technology especially have taken hold in nearly every corner of the world. There are already countless use cases for blockchain, many of which still exist only in theory, with developers working hard to achieve what was once considered to be impossible, and solve numerous real-world problems.
Some of these social challenges already have certain solutions, which can be further improved by employing blockchain. The internet itself is entering a completely new era of business and technological evolution thanks to distributed ledger technology.
This all started even before the blockchain was invented, and companies such as Amazon, Google, and even Facebook would not be able to do what they do without creating large and complex networks, which are basically a predecessor to the blockchain. Now, this technology offers a potential to take the web to a new era, which is why many tend to call it Web 3.0.
However, while this all sounds easy in theory, the truth is that the process itself is infinitely more complex, with countless obstacles along the way.
As 2018 is coming to a close, many believe that 2019 might be the year when the true transition to a next phase in the technological advancement of the world will take place. Even so, many issues still remain to be solved.
1) Problems With DApps
One group of problems lies in the concept of dApps, decentralized applications that came as a product of blockchain data network. For example, their user interfaces are still difficult to navigate and use.
The performance itself is often poor, as these applications depend on the speed at which blockchain handles transactions.
Additionally, there are cryptographic keys which are given to users themselves to manage. While this improves the safety and security of each user, many of them see it as a burden that they never needed to bear in the past.
Simply put, dApps at this time still lack improved design elements that would make them practical and enjoyable, in addition to being safe, useful, and decentralized. While there are some solutions that might resolve these issues, they have yet to be applied.
2) Data Ownership Dilemma
Next, there is a matter of data ownership. The difference between dApps and regular, centralized apps is that dApp users have the ability to use cryptographic spinning to control data access. This means that data access is no longer in the hands of the app developer.
However, this also brings a number of issues and challenges to all involved parties, in addition to advantages that come with the process. For example, developers need to design applications that will only use the data which was validated by nodes being run by independent parties.
As for the users, they will have to change the way they view data in the first place and start thinking of it as an asset they are owning. This is an asset that they are only “lending” to dApp creators. Developers can profit by charging people for using their dApps, while users can benefit from additional valuable features and functions without having to have their data sold to different vendors.
3) App Pricing Issues
There is also a big problem in the app sector regarding software-as-a-service pricing. Unless the user owns shares of a certain service, the only party that can benefit from the number of users enjoying the app is its owner. This is a harshly criticized imbalance which can be entirely resolved by using the blockchain technology.
As many are already aware of, dApps use their native tokens for purchasing various services. If these services become popular enough, chances are that the coin's price might be affected, in which the dApp benefits.
Services in question can include anything, from gaining access to a game, obtaining more storage, and alike. The more valuable the coin becomes, the more services coin holders can purchase.
4) Achieving Success Through Blockchain
Modern technology was able to benefit greatly due to the open-source aspect, which has successfully eliminated the majority of the bugs in software, improved the performance of different technologies, and even encouraged interoperability. Furthermore, the cost of development has dropped as well.
However, it became more difficult for businesses to truly thrive on platforms which are 100% open-source. This is also something that can be resolved via blockchain, as it can offer low development costs, increased resilience, and highly-available platforms with better chances of actually achieving success.
Many still have a wrong impression of the blockchain, viewing it as an enterprise software that carries a different name. This is false, as everything about it is different, including the data ownership model, its technical architecture, as well as economics.
Moving away from the current state of things to the internet of value will be a long and difficult process, with its own ups and downs. Furthermore, those willing to use this technology will have to learn to adapt their systems' designs in order to balance the needs of developers and users alike.