Top Three Challenges in Cryptocurrencies

• Amber Smith
• October 28, 2021

Where are challenges, would there also be opportunities? Fair enough, the crypto market has a spacious room for improvement to evolve and adapt with time. Thanks to the invisible hand tirelessly orchestrating the progress of the crypto economy based on the concept of laissez-faire.  Learn the many challenges faced by cryptocurrencies and crypto exchanges, which can be transformed into opportunities for growth.

Hacking of crypto networks

Perhaps you have already heard of the latest hacking incident. This has got investors and crypto exchanges worried. It was a recent heist against the Poly Network where the hackers were able to take away almost $600 million, according to a report. The loot is composed of Binance coins, Ether currency, and USDC tokens. As soon as the attack was confirmed, the company issued a public statement including a plea to the people behind the cybercrime activity. There was a request for communication and return of the crypto assets, which was apparently welcomed by the responsible group.

Every hacking incident is a constant reminder of the risks undertaken by crypto investors. Despite efforts to regulate cryptocurrencies and crypto exchanges, the risk of losing digital assets not backed by tangible assets would always linger. Chances are that you will have to rely on the system, which might be vulnerable to attacks but not to liquidation.  This is why the money was later returned into the accounts little by little. And someone from a research company has managed to track down the digital fingerprints of the attackers. Although the technology facilitates the identification of the perpetrators after some time, there is still a need to develop preventive measures to be able to come up with a hack-proof network or platform.

Upgrade For Better Crypto Versions

There were three notable upgrades in cryptocurrencies involving three big names in the market, specifically Bitcoin, Ethereum and Cardano. First, Bitcoin announced its latest upgrade called Taproot, which makes use of the Schnorr signature to simplify transactions, which will be launched later this year. Second, Ethereum recently implemented its own share of upgrades collectively known as the London Hard Fork that is a consolidation of five improvement proposals from brilliant developers. Third, the Cardano Network is now on the Purple Phase of the Alonzo Roadmap with a long way to go. There is more to expect from cryptocurrencies and crypto trading platforms as the bar has been raised. Enter the world of cryptocurrency trading with a visit to a regulated and beginner-friendly platform like the bitqt app.

Upgrades, more often than not, are about ways to improve the system so that clients will no longer have a hard time. One of the most common features of an upgrade is the efficiency of transactions which is characterised by speedy operations whether in buying, selling or simply transferring coins. Another is the reduction of transaction fees both guaranteed by Taproot and the London Hard Fork as delightful treats to their investors. Of course, you cannot leave behind other important ones such as privacy, security, and convenience. All these functions would make a difference when it comes to competitive advantage. 

Corporate Social Responsibility

The most renowned Bitcoin investor has already made his demand. It all started with the suspension of the use of cryptocurrencies to buy electric cars from Tesla in an alleged initiative to save the earth from unnecessary waste. Elon Musk said himself that he would be looking out for cryptocurrencies that will be able to bring about change in how mining and trading work. Cryptography currently makes use of computer networks consuming fossil fuel, which is not good news for the environment given the consequences of climate change. The challenge would be to shift to renewable and clean energy sources for players in the crypto market. 

The role of corporate social responsibility is becoming more and more imminent to corporate organisations. The crypto market is no exception, considering the expectations of its many different stakeholders, from individuals to corporate investors. It has to heed the call for better operations that would not be extremely taxing to the planet on the backdrop of the growing number of companies taking their respective shares of the responsibility. Let this be an opportunity for the crypto market to slowly shift into environment-friendly crypto operations.

Conclusion

With all these opportunities, there is a good chance that the crypto market can find itself embracing growth and development in terms of preventive measures against cybercrime, system upgrades, and corporate social responsibility.