Blockchain has been known for its ambition as well as vision. But when it comes to blockchain projects they actually prioritize and the things they are known for can certainly vary. In normal cases, projects rotate around three basic core aspects of Blockchain- Decentralization, Scalability and finally, Security.

A blockchain development company faces challenges in the creation of a blockchain which is decentralized, scalable as well as secure without actually compromising on any of these facets. Blockchains are generally forced to make certain trade-offs in order to prevent them from easily achieving all of the three aspects.

a. Decentralized- By creating a blockchain system which doesn’t rely on any central point of control.

b. Scalable- The inherent ability for a blockchain system to easily handle a growing and a large number of transactions. 

c. Secure- The actual ability of the blockchain system to easily operate as per expectations, easily defend itself from malicious attacks, bugs or any of the unforeseen issues and problems. 

Few blockchain app development services agree with the fact that blockchain data structure is marred with its own limitations which prevent it from rapidly scaling. However, a lot of the blockchain architects and companies believe that it is quite possible to create a blockchain project which achieves all of the three targets: one which is decentralized, scalable as well as secure. 

Let’s look at these three core aspects of Blockchain in detail.

1. Decentralization

It is the very core component or aspect of the Blockchain. In the case of tradition finance, the entire system is actually centralized. Essentially, customers pass control of their own assets to banks, from their own personal documentation to their assets, and allowing the banks to handle with complete control. 

Now, Bitcoin and other different early cryptocurrencies provided a decentralized as well as transparent alternative, which serves as the issuance as well as storage of money, without an actual requirement for a centralized entity. 

It is worth noting that decentralized systems matter a lot since they allow permissionless ownership where any person can use as well as build on the entire platform. Decisions are essentially made by consensus that means transactions are approved by a certain group of nodes instead of an individual node. A custom software development company can develop such decentralized systems where transaction approval is based on the consensus of nodes.

After these transactions are duly verified through consensus, they can’t actually be altered after the fact. Hence, the risk isn't actually placed on one particular central entity, and the trust doesn’t even rely on another node or individual when conducting a particular transaction. 

However, the trade-off in case of decentralization is the speed. If any transaction needs multiple confirmations before a consensus is reached, then it would certainly take much longer than if the transaction can easily be confirmed by one single entity. 

Scalability

When it comes to mass adoption of any technology or system, scalability is paramount. It is essentially the question of how much exactly a blockchain system can easily sustain, and if the system can seamlessly and smoothly operate as the demand keeps in increasing. For instance, a blockchain project is focused on scalability and performing thousands of transactions per second. However, if it can process millions of transactions per second in future, then it can be massively adopted.

Security

Being a promising and novel technology trying to earn reputation by improving the current and existing infrastructure, the blockchain system’s security is quite essential. With the huge barrage of very high-profile hacking of exchanges as well as manipulated vulnerabilities in the entire source code, it is quite evident that most of the crypto projects had duly chosen to focus on both decentralization as well as scalability without concerning the security. Even in the case of IoT app development, security is quite essential.

The blockchain ecosystems hinge on the actual strength of their underlying source code which must be examined carefully. Owing to the transparent nature of this source code as well as the potentially attractive benefits one can get from carrying out a successful attack, these blockchains become key targets for hackers.

While scalability essentially focuses on the upside, the security prevents the actual downside. Leading Blockchain has even faced setbacks which stifled their imminent growth. Even though scalability may essentially be a major factor, a lack of completely reliable security would have been a major contributor to this particular reluctance.

Conclusion

Blockchain has certainly become a major technology which is revolutionizing in various sectors. From governance, banking, finance, etc. blockchain technology is revolutionizing these sectors. Companies which are more risk-averse in case of new technologies as they have much more to lose. Hence, it is imperative for them to fully trust the latest technologies like Blockchain before they incorporate them into their own systems. A blockchain development company can easily strengthen this trust by offering machine-readable proofs which can be independently checked for complete transparency of the entire code security. However, it is quite difficult and tedious for any blockchain system to achieve decentralization, along with scalability as well as security, effectively. Blockchain technology is actually in its infancy at present, and the approach to this technology by blockchain app development services will improve in future.