ADN: Solving Blockchain Challenges for Enterprises
Blockchain technology is disrupting businesses, although some of them struggle with its adoption. ADN suggests solutions to these challenges.
As the digital world evolves with different technologies converging to provide solutions for tomorrow, we see many challenges that are being resolved and gaps that are being bridged. Things that we didn’t imagine possible today are now too common for us to even notice and appreciate without a little nudging from the past.
Nevertheless, many companies still struggle in adapting to these technologies, including blockchain. ADN believes that with blockchain, the traditional workplace will be disrupted in various ways such as transparent ledgers and less paperwork.
However, this entails changes in most of the company’s processes, some of which are difficult to alter. We feel strongly that companies that resolve these issues will be able to reap more benefits as provided by blockchain technology.
Here are some of the most common blockchain challenges that companies face. We will also provide suggestions on how to resolve these issues so that all companies can utilize blockchain seamlessly and therefore stay ahead of the competition.
Lack of Awareness of the Technology
According to Deloitte, the principal challenge that is associated with blockchain is the sheer lack of awareness of the technology. Even now, many companies still associate blockchain exclusively with Bitcoin, the first cryptocurrency to use it as the underpinning technology.
While this was understandable for a time, we believe it shouldn’t be that way anymore. Along with Bitcoin, there are many cryptocurrencies that are being recognized all over the world as legitimate payment methods like USDT, Ethereum, Bitcoin Cash, and Litecoin.
Today, there are many industries using blockchain technology apart from banking and finance. Some of these are supply chain, healthcare, cybersecurity, and energy. In fairness, blockchain is well-accepted in these sectors for its many benefits.
There is a need to have more technical experts and corporate leaders who have thorough awareness and understanding of blockchain so it can be efficiently integrated into their systems. Of course, this will be possible if we can get people to talk about blockchain in daily conversations.
At ADN, we try our best to educate our readers regarding blockchain technology. Using simpler language, we try to provide general insights that will help the blockchain community comprehend the technology’s intricacies.
We understand that any average reader could feel overwhelmed by the sea of information and technical jargon. Nevertheless, we aim to inform everyone about the benefits of blockchain so that bit by bit, it will be adopted by many companies and organizations.
Limited Scalability
Some blockchains are not suitable for large companies with numerous transactions due to their scalability issues. For example, Bitcoin averages at about 7 transactions per second (TPS), while Ethereum achieves 15 TPS.
On the other hand, there are some that can handle thousands of transactions every second with their blockchain. For example, Ripple’s blockchain can handle 1,500 TPS, while TRON boasts at least 2,000, 24/7. Many of these types of blockchains are popular choices for creating decentralized applications (DApps).
Did You Know?
For those of you who may be asking, “what is a DApp?” it is a mobile or computer application that uses a particular blockchain ecosystem to facilitate transactions and execute smart contracts. It is generally open-sourced, which means that its codes are available for anyone to see and inspect.
Companies need to find the type of blockchain that will indeed scale with their needs. They can also contact platforms that offer blockchain-as-a-service (BaaS).
ADN is also developing its own secure mainnet, which we believe will scale in this regard. We focus on creating an ICO security platform wherein investors can be confident in the legitimacy of every project they invest in, and every blockchain developer can find enough investments for their operations.
Low Level of Security
Despite blockchain’s immutable and secure properties, many companies suffer low levels of security. This may happen sometimes when their codes are faulty, which renders them vulnerable to hacks and other forms of exploitation.
This is possible since many blockchains are completely open-sourced, therefore other entities who may have ulterior motives are free to check the codes and explore for possible bugs.
To solve this threat, companies need to have dedicated blockchain experts. If not, they can outsource for blockchain security and maintenance services from certified cybersecurity companies.
As mentioned above, some blockchains are not scalable. They have low hash rates, which means that other shady entities can launch various attacks like double-spending and malicious forks. This can render the website useless.
Companies should have enough knowledge of blockchain technology so that they will know which blockchain company to partner with. Moreover, they need to avail of services from those that are considered experts in cybersecurity. Many of these offer protection to enterprise-level blockchains.
Regulation and Governance
Many companies hesitate to use blockchain technology because of legal and regulatory concerns. This is a legitimate concern, as it is indeed difficult to test and implement a new thing in every business if it hasn’t been tried, proven, and approved by authorities and other tech frontrunners.
For example, smart contracts, which can be used to replace the traditional ones, are yet to be regulated by legal authorities. Companies that sell real estate properties may find themselves in a difficult spot if they trust a faulty smart contract to speed up deals. Hence, the hesitation.
On the other hand, many legal institutions and authorities have been found to struggle in keeping up with advances in technology. They would have to understand the new technology, detect its possible flaws, deal with repercussions, and gauge its scope.
For example, smaller countries like Malta and Estonia are able to create crypto-friendly laws, while the UAE is expected to finalize its ICO regulation in 2019. But bigger and more influential countries like the US are careful in taking their official stance regarding blockchain-related activities.
Budding companies that are planning to use blockchain technology, especially for fintech services, can move to similar countries if they are able. One example of this is Binance, which is arguably the top cryptocurrency exchange company in the world. It was founded in China in 2017, but it relocated to Malta later on.
Company Culture
It is perhaps not an exaggeration when crypto bulls and blockchain advocates claim that this technology will revolutionize the world. We have witnessed many of the world’s leading financial institutions use blockchain technology to streamline their services. They even formed their own blockchain team to focus on this endeavor.
Many businesses will benefit from the blockchain. Even China has recognized the importance of this technology beginning when President Xi Jinping encouraged the country to speed up its blockchain adoption in a speech.
Nevertheless, many companies struggle in this regard since they will not only implement blockchain; they will also have to make a complete paradigm shift.
Deloitte wrote:
A blockchain represents a total shift away from the traditional ways of doing things — even for industries that have already seen significant transformation from digital technologies.
Blockchain integration means that company cultures will have to be changed. A number of employees who have been with the company for decades may find themselves in an uncomfortable position with the said changes.
But this has been a thing that happened many times before, and we expect more technologies to disrupt company cultures. Many might even claim that the reason they got ahead of the competition is that they were quick to implement disruptive technology.
ADN encourages company executives to attend various gatherings — hackathons, conferences, etc. — to understand how other leaders are overhauling their company culture and structure to welcome this innovation.
Moreover, there are scores of resources available online which can help struggling companies with their blockchain adoption not only so that they will understand how it affects business processes, but how companies use it to avoid possible mistakes.
As the digital world learns blockchain technology on a deeper level, we will see more of these challenges being addressed. Some new challenges may surface later on, but we are confident that the community will find solutions for them. For now, ADN hopes that many companies, startups, and investors will join hands and keep on uncovering new ways to improve our lives.
Did your company identify with at least one of the challenges presented above? Click on the “👏” button on the left side of the screen. Put those hands together as many times as you like. Also, interact with us on our official social media platforms to learn more about blockchain and ADN’s ICO protection technology.
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