Some problems faced by BCH at the present stage and possible solutions
BCH has been developing for one year and has made a lot of achievements, such as technological change, increase of computing power, increase of trading volume and improvement of infrastructure. However, there are still some problems and misunderstandings. This article will describe some of these problems and propose some possible solutions. Problem 1: LACK of funding for BCH technical team and related projects. This is a question the community has been talking about a while back, as Bitcoin ABC, one of BCH’s several independent development teams, broke its funding chain and once again raised the issue in front of all of its supporters. In fact, this is not only the case for BCH developers, but also for early Bitcoin developers. As technical developers of these non-ICO projects, their income sources basically depend on donations from the community and foundations. Both of these incomes are unstable and have less funds, which cannot meet the development needs of developers. Being short of money for a long period of time will reduce the desire of developers to research, after all, faith is not enough to live on. So, developers are faced with two choices: accept investment and go it alone (ICO). The bitcoin developers chose the former, founded Blockstream and received tens of millions of dollars in funding from Silicon Valley, which is the main reason Lightning LABS was founded. BCH developers are clearly not in the former category, and certainly not in the latter category, so there is a broken funding chain. Solution: To solve this problem, BCH community suggested that miners should use 10% of the block chain reward as the development budget by referring to DACHecoin. It is a good idea to force miners to use 1%~5% of the block reward as the funding source for the development team and related projects, but it has not been implemented for some reasons. At present, the main source of funding is the BCH Ecological Fund and donations from its supporters. Personally, I think we can cooperate with existing BCH crowdfunding platforms, such as Lighthouse and Coinfundr, to invest in or assist the project. Problem two: insufficient trading volume on the BCH chain. This is one of the main reasons that BCH has been criticized, with some opponents arguing that BCH has no trading volume, which naturally means no congestion. Personally, as a supporter of BCH, I admit the fact that BCH has few transactions, because there is a gap with Bitcoin, but this is not a reason to denigrate BCH. BCH has no first-mover advantage, especially when compared to bitcoin (2008), Ethereum (2014), and XRP (2011), the top three cryptocurrencies by market capitalization. Of course, the birth of BCH has its own popularity due to the relationship between Bitcoin, but the time is too short after all, no cryptocurrency trading volume is increased in a short period of time, most of it is accumulated. And it’s not bad that BCH has managed to reach an average of 20K per day of on-chain transactions over the course of a year (bitinfoCharts.com, averages 7/25 to 7/31). BCH dearth of another reason is because of the fixed 10 minutes out of block set, transaction confirmation time 10 minutes at a time, this is the merchants and user is difficult to accept, so most of the BCH actually paid more dependent on like bitpay payment processing applications, these applications can be traded temporarily the completion of the second grade, and then by miners centralized processing. Some of the reasons are relatively broad and fragmentary, such as policy tightening, the obsolete audience concept and so on belong to the human can not be done. Solution direction: With the improvement of BCH facilities and popularity, the number of people will gradually accumulate. It may shorten the block generation time of BCH and reduce the confirmation time to improve the user experience and increase the on-chain transaction volume of BCH. In addition to ensuring fast and cheap BCH transactions, it is equipped with some valuable functions, such as smart contracts, side chains, and even the possibility of lightning network. Problem 3: Low activity of BCH related applications. BCH has always been a large number of related applications. Based on the good compatibility of BCH, these applications are implemented quickly. The dApps (decentralized applications) discussed by the community include: Memo and Blockpress, social software, Cointext, which does not need to be connected to the Internet for second transfer, micro-blog reward robot “Biizan”, etc. Some apps may have been forgotten by the community, mostly because of low activity. It must be acknowledged that some apps are too meaningless and fungible. I don’t think it’s all about BCH. It’s a common problem with all cryptocurrencies. It’s never easy to create a “killer” app in a new field. Solution direction: The current momentum of application development should continue, and after the application is released, the investment will be determined based on the market response and project value evaluation. Take a look at the experience of existing centralized apps and look for areas that really need to be decentralized, or look for areas of application that are easy to attract users, such as games, contests, etc.