The global market adoption of cryptocurrencies poses significant challenges with regards to adaptive performance and scalability issues. CoinGeek.com spoke with Marco Krohn, CEO of Blockchain Consulting, and asked him about his thoughts on these pertinent issues.
Ever since Bitcoin and its underlying blockchain technology entered into mainstream consciousness, the issue of maintaining viable performance for a stable network and easing into higher degrees of scalability to accommodate more users have become intertwined. More people using a cryptocurrency networks means the way networks are built and the difficulty with which they are mined also grow in proportion. Coingeek initiated a conversation with withMr. Marco Krohn, CEO of Blockchain Consulting.
Trained primarily as a mathematician and economist, Krohn works with his consulting firm as well as Genesis Mining. According to his Twitter page, his focus is on legacy bitcoin and ethereum.
Asked about the implications of mainstream adoption to cryptocurrencies in the global market, Krohn confessed that this was a difficulat moment for cryptocurrencies. Krohn shares that “mainstream adoption is a little bit difficult at the moment, because technically bitcoin as a system… is a little bit complicated to use at the beginning… you have to download special software and you have to use these weird addresses, right?”
His apt observations on the user experience with regards to “bitcoin” are accurate, because a lot of new users have been misled into thinking that legacy bitcoin was the same thing as it was some four or five years ago, that is, a network that accomodates quick transactions at low rates.
Of late, though, these all changed as soon as the corporate takeover of legacy bitcoin happened, turning the poor network into a highly-congested waiting line with sky-high fees. “The volatility in the market is very high, so it needs a little bit morepolishing and needs to be a little bit more user-friendly,” Krohn observes, pairing the user-facing factors with the industry-specific needs of cryptocurrency.
Despite these circumstances, Krohn is optimistic about the role that cryptocurrencies will play in the future, especially with its leverage in the global market through current projects undergoing merchant adoption. “Now there are certain things you can do to improve the situation, there is something you can do on the level of Bitcoin, on-chain how we call that and that is kind of increasing the block size.”
Last year, August, the historical fork between legacy bitcoin and what is now considered by most crypto enthusiasts as the correct version, Bitcoin Cash, became a bold step forward into the future of cryptocurrency and blockchain technologies surrounding the ecosystem.
“This is going forward certainly something that is needed. Onthe other hand there are people that are saying, okay if you increase the block size now, it could have cause certain problems with respect to the decentralization. And their argument is, if we increase the block size we will need bigger machines to process all these blocks so a lot of these nodes will drop out and if the nodes drop out that’s bad for decentralization.” Krohn avers.
In the crypto market, it’s not always the highest prices that reflect what’s more valuable. Aggregated statistics across the market cap would point to utility as a factor that provides better appreciation over time, as compared to store of value.
In Krohn’s opinion, the technical difficulty of cryptocurrency mining is relative to economic backgrounds, sharing that: “On a technical level you could also argue it’s kind of about the most difficulty, so kind of increasing the difficulty how many miners are mining on that chain, on the other chain, but at the end of the day, this is driven by the economic background.”
The developers of Bitcoin Cash innovated on the old protocol and turned it into something that ordinary users may easily understand and hence prefer for adoption. With bigger blocks, almost non-existent fees, and fast transactions over a highly secure network, Bitcoin Cash extended the vision of Satoshi Nakamoto and placed it at the forefront of development.