Ethereum Smart Contract Development

Shortcomings of a blockchain

Traditional blockchains suffer from two major problems for currency transaction:

• Mining-pool oligopoly: Taking into consideration the competitive nature of mining rewards, mining pools with high-end technology make the process profitless for individual miners. Also, with decreasing mining rewards, as we reach the threshold of mining (for example, in bitcoin, currently it is 12.5 BTC; earlier it was 25 BTC, which came down from 50 BTC), miners will be charging high transaction costs to justify the cost of mining and transaction validation using electricity.
• Slow validation processes with no possibility of speed-up.