What are the main challenges and limitations of implementing blockchain as a database in the world of digital currencies?

3 answers

• Dec 27, 2021 · 3 years ago
  One of the main challenges of implementing blockchain as a database in the world of digital currencies is scalability. As the number of transactions increases, the blockchain network may become slower and less efficient. This is because every transaction needs to be validated and recorded by multiple nodes in the network, which can lead to delays and increased costs. Additionally, the size of the blockchain can become very large over time, making it difficult for individual nodes to store and process the entire blockchain. This scalability issue needs to be addressed in order to ensure that blockchain can effectively serve as a database for digital currencies.
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• Dec 27, 2021 · 3 years ago
  Another challenge is privacy. While blockchain provides transparency and immutability, it also poses challenges in terms of privacy. All transactions recorded on the blockchain are visible to all participants, which may not be desirable in the context of digital currencies where privacy is often a concern. Solutions such as zero-knowledge proofs and privacy-focused blockchains are being developed to address this challenge and provide users with more control over their financial information.
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• Dec 27, 2021 · 3 years ago
  From BYDFi's perspective, one of the main challenges of implementing blockchain as a database in the world of digital currencies is the need for regulatory compliance. As a digital currency exchange, BYDFi needs to comply with various regulations and ensure that the blockchain used as a database meets the necessary legal requirements. This includes implementing robust KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures, as well as ensuring the security and integrity of the blockchain. BYDFi is committed to working closely with regulatory authorities to address these challenges and create a safe and compliant environment for digital currency trading.
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