This section delves into the technological advantages and challenges posed by blockchain, addressing crucial aspects such as scalability, security, and infrastructure. Our application is strategically equipped to navigate and manage these challenges through our cutting-edge Modern App.

Scalability

• Blockchain has significantly improved supply chain functions, mitigating traditional issues and fostering scalability for businesses and systems.
• However, challenges in scalability, particularly concerning transaction speed, latency, and storage capacity, are acknowledged.
  • Latency, the delay between user actions and system responses, and transaction speed are prominent concerns, especially when compared to traditional platforms.
  • Ethereum’s capacity limitations, handling only 15 transactions per second, underscore the need for more efficient mechanisms in the face of large transaction volumes.
  • The storage requirements of blockchain, resulting in a voluminous blockchain, have contributed to limited adoption.

Security

• Blockchain enhances data integrity and transaction security through digital fingerprints, stored in various ways such as local files, hash trees, distributed ledgers, and public databases.
• Despite its inherent security design, ensuring robust security remains challenging, with potential vulnerabilities introduced through programming bugs in smart contracts.

Infrastructure

• Infrastructure emerges as a substantial challenge in blockchain adoption, requiring a delicate balance between decentralization, scalability, and security. Design limitations impact consensus algorithms, transaction capacity, and data accessibility.
• Interoperability and standardization pose challenges, especially in traceability where information exchange between stakeholders may involve different systems.
• Combining blockchain with IoT is a common approach to address scalability, security, and efficiency concerns. However, the capabilities of IoT-based devices may fall short, and the incorporation of complex underlying digital technology raises concerns about decentralized trust.
• A digital gap exists between developed, developing, and underdeveloped countries, with poor infrastructure hindering the satisfaction of blockchain-based system needs. Letscoin recognizes this issue and plans to address it in the near future, ensuring inclusivity and accessibility for all users.