Blockchain has grown leaps and bounds since its inception. It has been implemented across various industries and research and test trials are conducted to enhance its implementation even further. Its popularity can be attributed to transparency, security and transaction tracking solutions. However, you would be surprised to know that mass adoption of this technology is still a mirage for many as the trading volume remains significantly low. We are here to present you what hinders the mass adoption of this technology.
Absence of Commercial Application
According to industrial experts the major factor that hinders the mass adoption of Blockchain technology is lack of commercial application running on this technology. Corporates have to take part in adopting this technology to provide a global decentralised marketplace encouraging merchants to use crypto currencies. However, to do this, they are facing the challenge of funding this new technology. For companies that have invested millions of dollars on the current system, investing the same amount for a blockchain-backed system would be a major road-block hindering their inception into this technology.
Blockchain has the uniqueness of addressing specific problems in a system, both internally and externally. Hence products created with this technology becomes more productive. However, each innovative product answers only the needs and goals of the company that developed it. This trend makes it difficult for the mass adoption of blockchain, as one product fails to be interoperable with other products and system in general. This is mainly due to the lack of compatibility standards in the present industrial situation, which in turn prevents interoperability.
Security and Scalability
Technologies, no matter how innovative and productive they are, they aren’t fool proof. Products/services that used blockchain technology and became successful had security and privacy issues. Being a technology that requires smart contracts containing user information the issue of securing data has to be addressed. Also when it comes to handling a big load of transactions many blockchain systems are unable to handle the load on day-to-day basis. Hence blockchain in its current state is far from being a scalable and dependable technology thereby hindering its mass adoption.
Lack of Trust
A blockchain systems employs smart contracts that has user information, as a core feature of its functionality. Hence putting trust in a nameless and faceless diverse system makes it unreal for people who are using it. This way it becomes a trust less system especially for those who don’t understand technology.
Despite the above setbacks, there is an increase in interest in blockchain technology due to its revolutionary qualities. If the necessary funds and insights, which answers the above factors, are made available, corporates will increase their adoption of this technology. Industrial experts predict that eventual mass adoption of blockchain technology is well underway.