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In the midst of the 2017 bull race, it soon became apparent that there was a big problem. The major cryptocurrencies were struggling to handle the large amount of transactions being processed, and the rates began to soar when it became apparent that many cryptocurrencies had failed to resolve their downsizing problems. In addition to this, many exchanges, even some of the largest, were practically DDoS, as their servers could not handle incoming traffic.
Different sizing solutions
The fact is that 2017 has highlighted that the cryptocurrencies were not ready for the mainstream. The solutions to climb the cryptocurrencies were discussed before the upward rush occurred, but even more afterwards. Bitcoin is trying to scale their Level 2 Lightning solution. Of course, Bitcoin Cash has separated from the original Bitcoin chain because they believe that the increase in block size can solve the scalability solution. Ethereum has taken a different approach and hopes to move to Proof of Stake rather than Proof of Work.
All of this has created more debate and tension in the cryptocurrency community. The reason is that downsizing is extremely important for the success of any cryptocurrency. To be successful, they must all be able to climb. There are already some cryptocurrencies capable of handling large volumes of transactions, but these tend to be centralized and not much better than the traditional financial system in place.
Each side believes that their path is the best and sometimes the debate may seem rough or childish, in some cases, for the most part, the debates are very important. Mutual criticism and sharing of ideas is the only way they will keep each other going and improve.
A different kind of resizing
Trade also has not been immune to these problems. Some exchanges have been extremely slow in integrating the SegWit update on Bitcoin to reduce transaction fees. More than that however, the bear market has been a blessing in disguise for them. The reduction of traffic meant that these exchanges can update their servers and systems to ensure that if traffic increases, they will not have to delay registrations or suffer an interruption.
While scaling solutions for exchanges are very different from cryptocurrencies – rather than summoning new ideas, they only need to increase their ability to manage traffic – it shows how the entire space was poorly prepared for 2017. Events were not depicting cryptocurrencies in a particularly good light. Instead of fast and cheap international transactions, they were slow and expensive. Rather than a community striving to improve, newcomers have been welcomed into a deep-rooted division.
With the lessons of 2017 you learn well and truly, we hope that these solutions are in place and that everyone is prepared the next time.
