Now that cryptocurrencies have entered a bear market, I prefer to spend most of my time looking at projects that have the potential to fundamentally change the landscape. Technology was always the underlying reason why cryptocurrencies soared in the first place. 2017 was certainly an exciting time for crypto traders but during that mania, I think many lost sight of the original reason why crypto existed. Lambos are awesome but long-lasting technology that makes our world a better place is even better.
During the peak of the crypto boom, transactions were increasing at an exponential rate. This was mainly due to increased adoption by enterprises, institutional traders, and retail traders. The problem is that blockchain simply wasn’t ready for primetime. During that period, the networks became bottlenecked and struggled to keep up with the demand.
Crypto token holders usually like to brag about how fast their network transaction speeds are, especially in comparison to traditional payment methods. The visual below shows where transaction speeds currently are.
As one can clearly see, VISA, perhaps the most mainstream of all payment methods, is still king. But, to be fair, crypto is still in the very early phase of adoption so this will certainly change over time.
Ethereum is of particular interest as it certainly faces a few hurdles that need to be addressed. Those include the following:
- Speed – 20 transactions per second isn’t going to cut it going forward
- Cost – During the crypto boom, GAS costs continued to increase in price
- Scalability – The typical size of a blockchain block is 1 MB. The attempts to increase the block size have proven extremely difficult thus far. As an alternative,