Criticism of bitcoin
The drop of the bitcoin rate twice in the last couple of months and the general ongoing flat market crypto-currency is replenishing the army of skeptics and reducing the army of crypto-enthusiasts. Let’s try to consider the main theses, which are increasingly pointed to rabid fans who managed to instantly enrich themselves by hitting the crypto-currency trend, looking into their still burning, but fading eyes.
Bitcoin is anonymous
Bitcoin is anonymous until the first transaction made by a person you know. Despite the fact that all major crypto-currency exchanges request authorization and even passport data. Do they share databases with wallets addresses with others? It is unknown, but it is likely to be. Sending bitcoin to a person you know, he can be aware of all the transactions on your balance. It’s like opening the entire history of your credit card, including future operations. And what if the person is someone you don’t know? All the same, he will be extremely aware of your financial position and be free to do anything with this information.
Bitcoin is decentralized
Yes, it is decentralized, but not enough. In fact, the fate of bitcoin is determined by the miners, and secondly, by a small number of developers. The miners are merged into pools, 4 of which control more than 51% of capacity, 80% of these pools are located in China. In fact, it’s a cartel conspiracy, and the determination of the bitcoin fate can be predicted by knocking on 4 doors. Nowadays, any authoritative intelligence agency of the world is able to crash bitcoin, and it will be easier than trying to destroy any bank from the top 100. As for stability of the blockchain, the whole history of the blocks can be changed at its own discretion, possessing 51% of the power of the computer network. Again, let’s say hello to China!
Miners provide network stability
There is a war between different miners for the right to calculate the block. Hundreds of thousands of miners do not create one by one, they just calculate the same millions of times, and those who combine into the largest pool win the competition. If the miners were 1000 times smaller, the bitcoin network would work absolutely the same way, but the complexity would be lower, and the resources of the planet would be consumed less by the same amount.
Bitcoin solves the problem of trust in the network
Again a questionable thesis. When you are making a purchase with a credit card, you indirectly pay a certain commission, but in case of payment of goods by a crypto-currency, there are no guarantees and a mechanism for the return of your funds. It remains only to hope for the reputation of the seller, if he really cares about it and agrees that the goods did not suit you.
We will not raise questions of the slow speed of crypto-currency transactions, since it is one of the important direction in which the best developers and the greatest crypto-minds develop and try to find a solution, following the example of the Lightning Network system. We also mention the problem of the blockchain network’s data storage. For six months of active use, the mass of blocks of the Ethereum network exceeded 200 GB. Thus, in order to use a crypto-currency wallet, you need to pump your own wallet for at least a couple of days, and if you have not loaded the latest transactions for some reason, the new ones will not go away. There are no smartphones with such a volume of internal memory for now, and laptops will soon cease to be assistants in such operations. Otherwise, you just like all crypto-amateurs, will use third-party online services, delegating their trust and the safety of your crypto-tools. And it’s just about the crypto-currency wallets. It is not clear yet where and how to store data on street traffic lights on the blockchain. But let’s hope that progress in increasing the volume of digital media will ripen behind the progress in the field of blockchain.
Where can the technology of blockchain be used in the best way, except for speculation in the crypto-currency market and criminal money transfers? The answer is — in the field of micropayments. As for small amounts, the centralized administration can cost more than the amount transferred. The IZX blockchain platform https://izx.io/ perfectly deals with it. It has already successfully tested its own functionality to provide prizes or discounts for virtual tokens. IZX always deals with small amounts, since the discount is not more expensive than the ice cream cone, or lighters, respectively, and there is no need for complicated authorization and registration of the wallet. The user becomes the owner of the crypto-currency wallet by simply downloading the application to the smartphone without specifying any personal data. Transactions come instantly, while the creator of the campaign is available comprehensive statistical information on the response of customers and conversions in purchases. IZX went along the path of simplification to make the blockсhain a true ally, and not a headache for others.
