DeFi adoption requires faster, more scalable blockchain infrastructure
- Blockchain developers face challenges in building efficient and scalable blockchain infrastructure.
- Decentralized finance applications would depend on this newly built system to increase its chances of mass adoption.
Companies worldwide are now looking at blockchain technology as a viable means of gaining efficiency in their payments and supply chain transactions. There is no doubt that the technology can effectively replace the manual intensive way of the old administrative processes. It not only offers a faster and more efficient way of performing operations, but it also adds a layer of more security than the traditional method does not offer.
However, despite this undeniable level of success that blockchain could birth, the technology still faces varying degrees of challenges from poor design to the network suffering intermittently from traffic, which ultimately leads to poor user experience and latency issues. And with the fact that more devices are getting connected to the world, blockchain’s current design can still handle this massive amount of data. Thus, the pressure on networks to maintain fast speeds and enough storage capacity is undeniably immense.
As such, developers are faced with a battle of how they can maintain blockchain sustainability without trading off its speed or performance, thereby boosting its adoption rate.
We know that the more congested a blockchain network is, the longer the queues for the validation of such transactions. This method, considerably while useful for security purposes, makes transactions slower, especially when several people are on the network.
Another issue with blockchains is that developers are still grappling with how to store block on-chain. Developers know that any increase in storage requirements automatically leads to the network becoming slower and very unstable. The need for protocols to effectively download and transfer these chains within a limited period is high.
Blockchain faces the challenge of maintaining security, decentralization, and scalability. However, developers can only achieve two of these at every given point while sacrificing the last.
In this present time, the challenge lies in how developers would be able to achieve all of these without having to sacrifice any of these notable features.