5 Reasons Why Blockchain Technology is Failing at Mass Consumer Adoption
Recently, the consulting firm Deloitte published their top 5 reasons why DLT or blockchain technology is failing at mass consumer and enterprise adoption. The points really resonated and aligned with my views on the issues that our industry is currently experiencing. Enterprise customers are excited to leverage blockchain and distributed ledger technologies with the hope of ushering in a new era of accountability and transparency, but before we can get there, we need to solve the following five points, as laid out by Deloitte.
The points correlated nicely with Constellation’s direction in terms of technology and business focus. We have a ways to go, but I’m excited that the space is maturing and coming to terms with the real issues in front of us. Read on for my responses to the following five obstacles we need to solve before blockchain technology can achieve true widespread adoption.
Per Deloitte, the five roadblocks are as follows. The roadblocks are numbered and bolded, with our responses to how Constellation is tackling each one following.
1) Increasing Throughput and Performance: Constellation is using a directed acyclic graph (DAG) architecture and topological sequencing (as typically seen in big data architectures) to solve the underlying issues of speed and throughput. Find out more in our DAG 101 article.
2) Lack of Standardization and Interoperability: Constellation is using existing distributed computing standards like MapReduce, AWS, Java, and Hadoop. So many crypto and blockchain projects are reinventing the wheel when it’s not necessary, and we’re taking the complete opposite approach by leveraging proven distributed tech (link to our blog on that very subject).
3) Reduce Complexity and Cost: Regarding transactions, Constellation’s network is based on reputation and consequently will drastically reduce the fees currently experienced on legacy networks. In regards to the complexity of existing blockchain applications, we aren’t pigeonholing developers into using some abstract coding language such as Solidity. Developers will be happy to know that we’re utilizing existing and familiar coding languages (link to our blog) like Java and Scala, and we’re intent on building a bridge between mainstream app developers and allowing them to create and build using our decentralized framework.
4) Regulatory Uncertainty: While regulatory uncertainty is still highly prevalent we are in lock step with our legal team. We believe in partnering with like minded consortiums who agree there is a need for regulation to protect consumers, but that this regulation can’t overstep, hindering technology or the potential to open up new economies and value.
5) An Absence of Collaboration Between Blockchain-Related Firms/Consortia: We believe in proactive aligning ourselves with relevant blockchain consortiums, and we’ve already announced partnerships with the likes of MOBI, HyperLedger. Cross collaboration is essential to overcome the hurdles in front of us. A defining part of Constellation’s protocol is cross-chain liquidity, the ability for other protocols to connect and share data, other projects are working on this, approaching the technology from different angles. Let’s connect, share resources and build a greater ecosystem that in turn is more powerful and attractive to consumers and businesses.