In the ever-changing landscape of finance, a remarkable phenomenon has taken hold: the rapid growth of decentralized finance, or DeFi. This ...
Blockchain technology is hailed as one of the most innovative technologies of recent times. Protagonists tout it as the technology that will disrupt a wide variety of industries, including healthcare, real estate, finance, banking, mining, etc. However, what makes it truly revolutionary is its potential uses beyond Bitcoin transactions. Every new technology comes with a plethora of challenges & opportunities, and Blockchain is no different.
While thousands of start-ups today are using Blockchain to disrupt their industry, there are some noteworthy challenges that are preventing its widespread adoption. To put it simply, the technology has several challenges that companies and start-ups need to understand to experience the most out it. So, what are the major loopholes that Blockchain technology encompasses? Can it overcome all the complications and shine as a technological blessing?
In this blog post, we will describe some most promising issues that companies often face during Blockchain development adoption. So, without further ado, let’s get started.
Lack of security
Developers made Blockchain publicly visible while it was in its initial stages. It was designed to be accessible to all those who have made a transaction on the network. However, for companies and governments, this exposure could create several concerns. As a solution to public visibility, one can customize Blockchain so that others can access only those parts of the network which are relevant to their tasks. But creating such type of custom Blockchain networks consume a huge amount of time, expertise and planning, which makes its adoption a troublesome task for enterprises.
Lack of skilled Blockchain experts
Blockchain adoption is not everyone’s cup of tea. Developers with lack of adequate skillset is the factor that most companies underestimate during the Blockchain implementation. Besides hardware and software, it’s necessary to find skilled and qualified personnel to handle the adoption process. Blockchain technology is relatively new and growing at such a rapid pace that the demand for innovative enthusiasts is increasing with each passing day. Therefore, companies are unable to find the perfect match that is the major roadblock in the Blockchain adoption in present times.
Lack of tools for bug identification
Tools for bug identification are very helpful in verifying and utilizing the code with an extremely high degree of reliability. Also, the implementation of thorough testing and simulation environments are the best ways to produce error-free Blockchain code. But installing these types of testing environments and purchasing bug identifications tools require a lot of time & money, which most companies find it difficult to hop on. Hence, the lack of methods and tools to check the depth of Blockchain code is another major obstacle for the businesses willing to adopt Blockchain.
Lack of regulations
No one follows any specific rules and regulations when it comes to Blockchain. The lack of a clear regulatory environment is another major hindrance in Blockchain adoption. Although Blockchain guarantees a lot of benefits in terms of visibility and transparency, still most people find it insecure. They still tend to doubt whether it is safe or not. As lack of regulation creates a risky environment for businesses, government and extremely controlled sectors should create proper guidelines for easier & safer Blockchain adoption.
Lack of Energy Consumption
Blockchain technology requires proof of mechanisms for transaction validation. Moreover, it requires the computation of complex mathematical problems to process transactions, verify them, and secure the network. In order to perform all those tasks, systems present in the Blockchain environment require a huge amount of energy so that they can produce adequate power. Also, it requires some additional power to cool down the systems, which most of the companies find difficult to achieve.
Lack of user growth understanding
In the present scenario, Blockchain technology is facing a multitude of problems in effectively supporting its large user base. Also, the leading Blockchain-based platforms like Ethereum and Bitcoin gets slower in the transaction process. Therefore, companies looking to adopt Blockchain should do in-depth research about how to upgrade the existing Blockchain systems to improve their user management capability.
These were some major impediments that almost every business face during the enterprise adoption of Blockchain. The list of Blockchain adoption challenges mentioned above clearly underlines the need for technological improvements which every business needs to focus to make this technology widely adaptable. In today’s technological world, where most of the people are enmeshed with digital technologies, the Blockchain-powered Enterprise system could be a major breakthrough in a company’s success.
So, if you are working in Blockchain space – incubating a project, validating use-cases, or have any inquiry regarding Blockchain, then don’t hesitate to visit us. We boast an astute team of Blockchain developers who can deliver a sundry of customized and turnkey solutions which can help you expand your business.