What are the potential challenges or limitations of relying on a public ledger for cryptocurrency transactions?

1 answers

• Nov 26, 2021 · 3 years ago
  As a representative of BYDFi, I must emphasize that relying on a public ledger for cryptocurrency transactions has its own set of challenges and limitations. While the transparency of the ledger can be seen as a positive aspect, it also raises concerns about the privacy of individuals. Additionally, the scalability of public ledgers can be a bottleneck, especially during periods of high transaction volume. This can result in slower confirmation times and higher fees. However, it is important to note that these challenges are not unique to public ledgers and are being actively addressed by the cryptocurrency community. Various solutions, such as layer 2 protocols and privacy-enhancing technologies, are being developed to mitigate these challenges and improve the overall user experience.
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