One of the major challenges that we have seen regarding the block chain technology used by the Bitcoin is that as well as allowing one transaction to be processed for a group of people, it is also found that there is a requirement for a large number of these transactions to be processed in order to maintain the block chain. This is because if you do not have enough processing power to handle more than one transaction at a time, then you can’t possibly be in control of the blockchain.
Because of this, it has been suggested that because of the processing power required to process more than one transaction, this would in itself cause an increase in the cost of transaction. This would have a significant impact on the price of the currency. While many people are already using some form of mobile application in order to transfer funds, the need for further processing power to allow people to do this has prompted the development of what we know as “Bitcoin POS” machines.
These Bitcoin POS machines have been designed to allow people to buy and sell with these digital currencies, but they have also been designed to allow them to take debit and credit cards so that the two parties don’t have to stand in a queue waiting to complete the transaction. It has also been argued that in the future these machines will be able to accept deposits from clients rather than the credit card being used to purchase the Bitcoins. This would mean that there would be no queue when the client wants to place a deposit.
When we consider the point at which the processing cost becomes too high for the Bitcoin, we then have the Bitcoin scalability problem. This is where the system becomes quite inefficient because of the scaling issue as opposed to the transaction fees. However, while this scalability problem seems to be difficult to resolve, one of the ways this can be solved is by utilizing the technology of Bitcoin mining.
The way that this will help resolve the Bitcoin scalability problem is that it will allow a company to take control of the transaction process by having them pay for the processing power to process the Bitcoin transactions rather than paying the miners to process the transactions. There are companies that offer this service and there is also the possibility that a central company would offer this service.
A final note will be that there is the option that a centralized company would offer this service and there will be another solution to this problem. This is the issue of the miners becoming highly in demand. By having the miners process the transactions, they will be free to decide how much they want to earn from the transaction fees.
With a basic understanding of how this works, we have to ask ourselves “how fast will the Bitcoin scalability problem get solved?” One thing we have to remember is that this is all just theoretical because the main point of Bitcoin is to allow one person to send a transaction to anyone else in the world for a very small fee.
This is why the processing power should not be the cause of the scalability problem. Instead, the cost of the processing power is caused by the cost of the mining and how this affects the pricing of the currency.