The Bitcoin blockchain is stored locally on all computers that are running a Bitcoin software client that is in full implementation. In early 2014, Blockchain was getting to 57 GB in size. As a year has elapsed and more years ahead are coming, the user’s ability to handle and manage the size of B, blockchain will depend on lower costs on computer storage and the bandwidth of the internet. There are improvements on Bitcoin that have been proposed that will increase its scalability. While some of these proposals increase the maximum size of each block that is being added to the Blockchain from the current maximum of 1MB per block, others are looking at reducing the storage capacity needed for the Blockchain. One proposal involves what is called selective pruning for old Bitcoin data transaction.
Within the core, development coming to the debate related to scaling Bitcoin has provoked lots of controversies, majorly because of the map proposals talk about a “hard fork” of the Bitcoin software. The proposal that is aligned with Bitcoin XT and Bitcoin Classic will not be reversible with the existing Bitcoin Core reference client.
Benefits and weaknesses of Bitcoin and the Blockchain
Bitcoin has several benefits over the existing electronic systems. These benefits largely add up to the recipient of the transaction, but certain benefits may be realized by consumers or spenders.
No risk if chargeback fraud. Once a Bitcoin is sent and cleared, a Bitcoin cannot be reversed.
Transparency. All transactions in a Bitcoin network are cleared in the blockchain, meaning A complete auditable, and an immutable record exists of all the activity.
Low transaction costs. A Bitcoin network infrastructure is subsidized by the money creation process. Consequently, transactions on the Bitcoin Network can be sent with the inclusion of no transaction fee at a minimal fee.there is no costs to accessing the Bitcoin network.
Financial access. Although it does not provide all services as the banking institutions do, it provides value electronic payment and storage services for users who lack access to traditional financial services.
Financial information protection. Bitcoin transactions can be performed without revealing confidential information to the recipient, this limits the potential of exposure of information to hacks on the database.
Network security. The Bitcoin Network is highly secure due to the use of cryptographic and decentralized blockchain protocols. The public-private key pair used to provide top notch security for any brute force hack or an accidental instance of two users generating the same key. Additionally, there s no centralized point of failure, limiting the susceptibility of the Bitcoin network to hacking and downtime.
Close to instant transactions. Bitcoin network transactions have nearly instantaneous transactions. Confirmation and Clearing of this transactions can occur in a minute or an hour. Other payment systems can take longer.
As is with every system, there are advantages and limiting beliefs or weaknesses in the Bitcoin payment service.
Difficult to use. Bitcoin is not easy to use by consumers. It is the most difficult software to transact with often; third party solutions can simplify this issue.
Difficult to access. Although the Bitcoin network is open access and liquid are inexistent in the US and other economies, few of these services and exchanges allow the purchase of bitcoins are regulated and have a significant operational history. The opening of accounts with regulated exchanges requires anti-money laundering and verification and funding of the accounts which makes it difficult for new users to get bitcoins quickly.
Limited institutional and retail adoption. Although it far blows out any altcoin in adoption and works easily in the network effects relative other cryptos, the use of Bitcoin is limited relative to existing payment systems or financial technology.
No solid protection against mistakes. Unlike traditional electronic payments, transactions in Bitcoin can’t be reversed nor can they be restored. If a mistake is done, or a private key is lost, the user will lose all the funds.
Difficult to secure. Although the cryptographic protocols and the Blockchain that are a foundation of the of Bitcoin are secure, users need to safely store and utilize their private keys to ensure that their bitcoins are safe. One needs to have proper personal computing and home security I place into secure private keys.
Bitcoin is a technological innovation. The advantages of Bitcoin and Blockchain are just at the early stages of understanding by users. The ability to leverage blockchain technology to secure, verify and audit information in a scalable manner is one of a fascinating element of this innovation. To add to it, the ability to build rights or a voting ecosystems, programmable menu of independent entities through smart contracts allows new decentralised applications that may hold value for the presently practical or the same type of future innovations that the internet has made possible for the preconnected world.currently, institutions have started to use Blockchain technology to build protocols of concept relating to the settlement and recording of property rights and financial instruments.