Problem Statement
Last updated
Last updated
The blockchain industry has witnessed tremendous growth since its inception, but not without its fair share of challenges. Although blockchain promises a decentralized future with enhanced security and transparency, several underlying problems have hindered its mass adoption and real-world applicability.
Many of the existing blockchain networks struggle with slow transaction processing times, especially during periods of high demand. For instance, Bitcoin and Ethereum can handle only 7 and 30 transactions per second (TPS), respectively. These speeds are not viable for applications requiring real-time transactions.
Elevated gas fees for transactions and smart contract interactions have become a major hindrance for users and developers alike. There have been instances where users have had to pay more in transaction fees than the actual value being transferred. This high cost of usage is a barrier to entry for both individual users and enterprises.
As the number of users and transactions on a blockchain increases, the network becomes congested, leading to slower transaction times and higher costs. Most existing layer-1 solutions have not been able to address this problem effectively, thereby limiting the use-cases that can be efficiently built on these platforms.
The steep learning curve and technical intricacies associated with blockchain technology deter non-technical users. The ecosystem needs a solution that is not only robust but also user-friendly.
Many existing blockchain solutions operate in silos, unable to communicate or interact with other blockchains efficiently. This lack of interoperability limits the scope and utility of applications built on these platforms.
The aforementioned challenges have created a paradoxical situation where the industry is growing, yet it’s not achieving its full potential. The market needs a blockchain solution that is fast, affordable, scalable, and easy to use, without compromising on security and decentralization.
