Not a bad article, but it mirrors a lot of what I've been preaching for the past 3+ years now, especially regarding the following:
- The first problem is the desire of nation states to control who gets to play in their financial system and, consequently, to counteract (or not validate) cryptocurrencies at the state level. This is the cause of many recurring legal issues associated with cryptocurrencies.
- The second is technical — there is a high degree of complexity associated with Blockchain scalability that eventually could lead to entire system collapses. The main challenges include: vulnerability to DDoS attacks, Blockchain size, and bandwidth TPS (transactions per second).
- The third problem is the architecture of consensus: PoW leads to mining centralization and technological centralization, PoS makes it possible for the attacker to maintain parallel block chains without high costs. I know many of you would love to jump all over this simplistic explanation, but we don’t want to dive all the way down the rabbit hole today.
All difficult problems, but I think the first will take the longest to be "solved", unless a hand is forced. The best way to force that hand is for a project to achieve rapid mass market adoption, and I mean true adoption here; the 15M users that Bitcoin has is
NOT adoption. With a rapid influx of users over the short term, there will be no ignoring the fact that these regulatory issues need to be solved asap. A bonus here is that the regulations would probably be a lot softer, as there's now 100's of millions of consumers to keep happy too.
But then it becomes a chicken and egg problem, the tech we have currently can hardly support 10M users, let alone 100M+ consumers. Until we have tech that can scale, is efficient and easy to use, mass adoption of that magnitude won't happen, because it can't happen. At best the tech will be bastardized with private and permissioned restrictions and hidden away in the back end of a bank. That's not adoption either in my book as the USP of this technology is to give people a choice not to use a bank, NOT give the bank a more efficient system to decrease their OPECs and increase profit margins.
Which brings us to points 2 and 3.
There are a lot of people looking at solving one or both of these at the moment, myself included. Seeing as you bring them up, what efforts or solutions does Humaniq bring to that table?