Scalability:
Blockchain networks, especially those using proof-of-work (PoW) consensus mechanisms, can face scalability issues, limiting transactions per second (TPS) and increasing transaction costs. A mitigation strategy we use is the implementation of layer 2 solutions like Lightning Network for Bitcoin or Plasma and Sharding for Ethereum to increase TPS without compromising security. Or we can switch to more scalable consensus mechanisms such as proof-of-stake (PoS) or delegated proof-of-stake (DPoS).
Interoperability:
There are numerous blockchain platforms, but they often lack interoperability. We develop and implement cross-chain protocols that enable communication and transactions between different blockchain ledgers. We can also work towards establishing industry standards for blockchain interoperability. Some existing initiatives working towards are the International Organization for Standardization (ISO), European Telecommunications Standards Institute (ETSI) or Hyperledger.
Security Concerns:
While blockchain is inherently secure, its applications, including smart contracts, are not immune to vulnerabilities and attacks. We conduct regular security audits of blockchain applications and smart contracts. We implement the latest security practices and incident response strategies. We educate developers and users on security best practices and common vulnerabilities, such as logic bugs or reentrancy, in blockchain systems.
Energy Consumption:
Proof of Work (PoW) blockchains, such as Bitcoin, are criticized for their high energy consumption, raising environmental concerns. To mitigate this, we can implement the adoption of Proof of Stake (PoS) or other less energy-intensive consensus mechanisms.
Privacy Concerns:
Public blockchains offer transparency but can also expose user data and transaction details, raising privacy concerns. We can implement technologies like zero-knowledge proofs to enable transaction validation without revealing sensitive information. We can use hybrid blockchains that combine the transparency of public blockchains with the privacy features of private blockchains.
Computools was selected through an RFP process. They were shortlisted and selected from between 5 other suppliers. Computools has worked thoroughly and timely to solve all security issues and launch as agreed. Their expertise is impressive.