[Tech]Limitations of Blockchain Technology
Bitcoin, the first-generation blockchain, first introduced its blockchain technology to the world in 2009 and showed its potential as a currency through a distributed ledger. To further enhance the practicality of the blockchain technology, Ethereum, the second-generation block chain, released the Smart Contract and showed a new direction for the blockchain. Despite technological advances such as Smart Contract, Ethereum also had a few limitations such as slow consensus speed and heavy network load. To solve the problems of Ethereum, EOS, a third-generation blockchain, was launched.
Although EOS was developed through PBFT(Practical Byzantine Fault Tolerance) consensus algorithm to solve the problem of slow consensus speed and heavy network load, it doesn’t fundamentally solve the scalability and processing speed problem that arise as the number of applications increases.
Vitalik Buterin, who developed Ethereum, and many IT professionals agree that the three most important technical aspects when applying blockchain technology to real business are security, decentralization, and scalability. Buterin has named the current situation, the Trilemma of Blockchain that requires three characteristics of blockchain technology to be secured at the same time, but only two of the three characteristics are satisfied due to technical limitations.
For the commercialization of the blockchain, resolving problems regarding the transaction’s slow processing speed and blockchain’s scalability is required. To solve the problem, a private blockchain is rapidly spreading, but security issues are always being raised because of the limited number of nodes on the private blockchain when verifying the reliability. In other words, private blockchains are not resolving the Trilemma of Blockchain same as the existing public blockchains.
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