Limitations of Cryptocurrencies

Despite the rise of Bitcoin leading up to Ethereum's Smart Contract, worldwide adoption is only 2% and limited to financial market products.

There are numerous factors that prevent users from embracing the advent of blockchain and cryptocurrencies.

User Adoption

Cryptocurrency adoption continues to grow around the world. Aside from anecdotal evidence, there has not been much objective measurement of how adoption and usage patterns differ around the world.

Global Cryptocurrency Adoption Index charts can be found here

Global Cryptocurrency Adoption Index Charts

High Volatility

Cryptocurrencies are attractive payment options for businesses, but their volatility poses a challenge. Most cryptocurrencies are meant to be used as a means of payment, but their values can fluctuate drastically within minutes.

Limited Availability of Stable Tokens

Fiat-linked cryptocurrencies like USDT are questioned for their trustworthiness and limited accessibility to exchange platforms and often come with high transaction fees. Most stable tokens are limited to USD.

Slow Transaction Speed

Ethereum and Bitcoin both struggle with slow transaction times and high network bottlenecks. Ethereum can perform transactions at a rate of 30 transactions per second, while Bitcoin can only support transactions at a rate of 4.6 transactions per second.

High Transaction Fees

Ethereum's confirmations of transactions, or what we call proof of work, are only accelerated by high fees. A single transaction could incur gas fees of $8-50 in 2021.

Complexity of User Onboarding

Many onboarding steps must be followed for a typical person to use a cryptocurrency, including managing a private key, a public key, and an incomprehensible wallet address.

Difficulty with Exchange and Payment

Transferring cryptocurrencies is more difficult than exchanging, as it requires setting up an account with multiple exchanges and verifying your identity. Someone without some understanding of cryptocurrencies will have difficulty doing this. Also, it is very difficult for people living in economically underdeveloped countries to exchange and use cryptocurrencies.

Conclusion

Cryptocurrencies do not fulfill basic financial services for the masses due to non-scalable, expensive proof-of-work blockchain fees, volatility of the currency, and difficulty of use. To ensure high security, a person has to follow many steps under a cumbersome registration process.

Asdra aims to build an ecosystem to solve the aforementioned difficulties. To succeed in a fast-paced and ever-changing technology, Asdra is building a full suite of protocols and applications by leveraging blockchain technology and decentralized protocols.