The birth of Bitcoin was designed as a purely financial solution, while Ethereum became a proving battleground for a number of new innovative projects.

However, with each project, comes certain challenges, specifically relating to scalability and accessibility.

Introducing a peer-to-peer (P2P) infrastructure into the fintech industry will help fuel-free, real-time transactions, with a highly scalable smart contract protocol. This would ensure that such platforms are fully optimized for tokenization and trustless financial operations.

In a P2P network, the user utilizes and simultaneously provides the foundation of the network. Each computer system or “peer” on the network is considered equal (“nodes”). A peer makes a portion of computing resources, including processing power, network bandwidth, and disk storage, directly available for use to other participants, without utilizing any intermediary servers or hosts.

Playing off the concept of P2P platforms we are most familiar with, including the infamous Kazaa, Limewire, or Frostwire, the information and identities of all participants on the P2P system, are hidden, and in this case, could be concealed on the Blockchain. Double encryption.

Users on @QredoNetwork, can engage in PEER-TO-PEER (P2P) atomic swaps across a host of #crypto assets, with a secured 🔐 transaction on a good network and minimizing the risk of information leakage

Read morehttps://t.co/BCJCgPSL7x

#Theqreed #Qredo #QRDO $QRDO

— Adefarati Taiwo (@AdefaratiTaiwo) April 30, 2022

The State of the Fintech Industry

The fintech industry currently lacks sophistication when it comes to the blockchain industry. Still, in its infant stages, this level of innovation requires a great deal of education through costly research and development.

Achieving Unlimited Scalability

As the blockchain network grows larger and more populous, the speed at which users and participants conduct transactions slows down. Many current platforms, including startups, provide a simple means to transact, but when it comes to executing and completing a transaction, it could take hours.

To survive, a fast and efficient means of transacting needs to occur, otherwise, that adoption rate will drop quicker than the blink of an eye, causing a fatal blow to any platform.

Providing Wholly, Transparent Accessibility

Not just anyone can enter the crypto space, at least from a developer’s aspect. There is a high barrier of entry a developer must overcome before they successfully are accepted into space. Why? It requires a certain level of development experience and expertise in order to understand the architecture behind chains. This is far from a “plug and plays” technology.

Also, read – Decentralized Finance And Cryptocurrency Banking – Future of finance world

For those companies investing high dollars into the research and development of these chains, it will yield an extremely rewarding and sophisticated demographic.

What A Successful Blockchain Looks Like

Simple to explain, harder to implement—to provide a tangible value to market participants, a blockchain platform should consist of certain characteristics, similar to those implemented by global payment card systems. Otherwise, the Blockchain cannot hope to serve and/or provide viable alternatives to centralized systems.

Issues:

• Transaction times are extremely long for execution
• Very low general throughput
• Prohibitive and highly volatile costs of trivial transactions
• Wasteful and un-scalable PoW mining
• Unsatisfactory user experience

Viable Solutions:

• The practical governance model that is optimal for the business requirement;
• Ninety-nine percent (99%) network availability and transaction speed guarantee;
• Transactions that are free to end-users, and inexpensive for business participants;
• No more than 30 seconds for a transaction to be completed; and
• An easy and practical way(s) to transfer value to and from major cryptocurrencies

Currently, there are three (3) generations of Blockchains in existence:

Blockchain 1.0

As the first generation of Blockchains, this focus was on providing services for cryptocurrency transfers and very basic computational facilities, such as Bitcoin and its descendants, all secured by a ‘Proof of Work’ (PoW) consensus algorithm.

Blockchain 2.0

Building upon its predecessor, this phase aimed to provide a flexible, decentralized computation in combination with data immutability, alongside cryptocurrency services, such as Ethereum and its forks, all secured by PoW.

Blockchain 3.0

As enthusiasts and innovators start to look towards this third generation, the focus is to offer higher transaction speeds and throughput. However, no sacrifice, no victory. Many of these potential solutions sacrifice and/or impact decentralization, leading to potential abuse.

Following my passion for law, my biggest concern when looking at blockchain utilization is how space will address and (hopefully) resolve regulatory governance.

One company that caught my attention is Aerum, because of its hierarchy model for governance and consensus formation. The platform’s desire to become a number one platform based on Ethereum, where scalability and accessibility come together through a P2P-enabled community. In its two-tiered governance model, there are two types of users— “regular” and “delegate”.

“Delegates are actually business owners or service providers, who use AERUM’s blockchain, whereas ‘regular’ users are users of the delegate’s platform,” Alex Randarevich, Aerum’s CEO told me.

Think of it in the context of social media. A ‘regular’ user would be those using Facebook, Twitter, or Instagram; whereas the ‘delegate’ would be the individual(s) who own the social network.

By allowing only delegates to vote on-chain, this incentivizes those block mining and/or validation rewards to be redistributed to the delegate and any user who staked the native token, XRM, helping them into that role.

Before we continue down this road of trying to implement a currency into our financial system, we need a strong, stable blockchain network that will allow for the hundreds of missions and goals these innovative projects bring to the blockchain space.