📄️ Problem - Inequitable Wealth Distribution
Most blockchain systems primarily facilitate the transfer of value and execution of smart contracts. Without mechanisms like UBI, these systems may enable a small group of individuals, typically early adopters or those with significant resources to accumulate wealth. This can result in a system where the rich get richer, and those without investable assets or technical knowledge do not benefit from the blockchain and AI’s wealth-generating capabilities.
📄️ Problem - Data Privacy Concern
Most blockchain systems maintain transparent ledgers, which can compromise privacy because transaction details are exposed to all participants. This transparency is essential for trust and security but can be a vulnerability if personal data is involved, potentially exposing users to unwanted scrutiny and data exploitation. Furthermore, the immutable nature of blockchain means once data is recorded, it cannot be altered or deleted, posing a risk for personal data management and compliance with privacy regulations.
📄️ Problem - Blockchain Trilemma
The Blockchain Trilemma refers to the challenge of achieving the ideal balance between decentralization, security, and scalability within a blockchain network—a balance that is often difficult to attain as enhancing one aspect can lead to compromises in the others. This concept is a foundation in the architecture of blockchain technologies, where the dynamics between these critical attributes define the network performance and the user experience.
📄️ Problem - Sensitive Data Management
In blockchain architectures, managing sensitive data, particularly biometric information, is a complex challenge. The immutable nature of blockchains ensures data integrity and security against tampering. However, this permanence can conflict with privacy requirements and the dynamic nature of personal data governance, necessitating innovative solutions to balance security and flexibility.
📄️ Problem - Real-World Application Support
Blockchain technology, as the foundation for digital trust, streamlines secure and transparent transactions, highlighted by smart contracts that self-execute without intermediaries. However, this property allows anyone to view transactions, posing risks to personal data exposure and presenting obstacles for privacy management. As blockchain adapts to digital and real-world applications, it faces challenges in tokenization, scalability, maintaining security while offering user-friendly interfaces, and protecting user privacy during its rapid development.