Thursday, June 21, 2018

Could cryptocurrency expansion lead to the crashing of the internet? BIS study believes so under current technologies

In a new research report by the Bank of International Settlements, the 'central bank of central banks' warned that the ever increasing cryptocurrency industry could potentially crash the internet as mining and transactions demand ever increasing amounts of electricity and processing power.

In fact the study also asserts that without the creation and introduction of next generation supercomputers, the ability of the 'Ledger' (Blockchain ledgers) to be able to expand to necessary and projected levels under the world's current technologies would overwhelm the internet within a matter of months if the ledger became fully mainstream.

Only supercomputers will be able to process cryptocurrencies in nearest future, and transactions can lead to an internet collapse, according to a recent report by Swiss-based Bank for International Settlements (BIS). 
“To process the number of digital retail transactions currently handled by selected national retail payment systems, even under optimistic assumptions, the size of the ledger would swell well beyond the storage capacity of a typical smartphone in a matter of days, beyond that of a typical personal computer in a matter of weeks and beyond that of servers in a matter of months,” the report said
Records of cryptocurrency transactions are kept on a digital ledger. With every money transfer, the ledger swells in size. 
Then, users of cryptocurrencies will face other problems with transactions, according to the report. “Only supercomputers could keep up with verification of the incoming transactions. The associated communication volumes could bring the internet to a halt, as millions of users exchanged files on the order of magnitude of a terabyte,”BIS wrote. - Russia Today

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