While interoperability is vital to blockchain payments’ success, another critical area for growth in the industry is scalability.
It simply won’t be possible for enterprises to build a healthy and functional ecosystem around the technology without scale. Addressing on-chain scalability and creating a distributed ledger that can facilitate rapid value transfer and smart contract functionality could make the potential use cases for the technology easier to globalize.
Many projects in today’s market have tried to fix the inherent scalability issues that currently plague blockchain technology. But there are other variants to distributed ledgers that could potentially have much higher throughput and security than any existing blockchain. One such form of distributed ledger technology is directed acyclic graphs. DAGs are inherently asynchronous and can theoretically achieve tremendous throughput as more people join the network and transact.
For most companies, the value of blockchain still lies in its potential more than its current use. Overcoming this narrative will be one of the technology’s most significant challenges.
As the majority of the industry remains focused on building new entirely new blockchains, the true industry leaders are those that have been rapidly developing alternative solutions to the systematic problems have contributed to the rise of blockchain technology. Identifying and solving these issues, and addressing the requirements for progress, will be critical for businesses as they look to succeed in today’s overcrowded market.