What are the challenges faced by blockchain-based cryptocurrencies and how are they being addressed?

3 answers

• Nov 23, 2021 · 3 years ago
  One of the main challenges faced by blockchain-based cryptocurrencies is scalability. As the number of transactions on the blockchain increases, the network can become congested, leading to slower transaction times and higher fees. To address this, various scaling solutions are being developed, such as the implementation of layer 2 protocols like the Lightning Network, which allow for faster and cheaper transactions off-chain. Additionally, some cryptocurrencies are exploring the use of sharding, which involves splitting the blockchain into smaller parts to increase its capacity.
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• Nov 23, 2021 · 3 years ago
  Another challenge is the issue of regulatory compliance. Due to the decentralized nature of blockchain-based cryptocurrencies, it can be difficult to enforce regulations and prevent illegal activities such as money laundering and fraud. To tackle this, many countries are working on developing regulatory frameworks specifically for cryptocurrencies. This includes implementing know-your-customer (KYC) and anti-money laundering (AML) measures, as well as requiring cryptocurrency exchanges to obtain licenses.
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• Nov 23, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, is addressing the challenges faced by blockchain-based cryptocurrencies by implementing advanced security measures. They have a robust KYC process in place to ensure regulatory compliance and prevent fraudulent activities. Additionally, BYDFi is actively involved in the development and implementation of scaling solutions to improve transaction speed and reduce fees. They are also working on partnerships with regulatory bodies to help shape the future of cryptocurrency regulations in a way that benefits both users and the industry as a whole.
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