The struggle of Blockchain adoption in the global economy
From Finance to Healthcare, blockchain has always remained a hot topic, and why not? This technology is independent of any Central server, any owner or any national boundary constraint. But, in spite of holding so many features, this technology is way too far from the reach of the majority of people. In this article, we will be focusing on the top reasons why this technology is struggling to find its space in the global economy.
Higher processing cost
One of the biggest hurdles in the implementation of blockchain is the high cost associated with its processing. For example, if we take the case of world’s first digital currency, Bitcoin we will be astonished to know that a bitcoin network is capable of allowing only 3 to 5 transactions in a single second and during this transaction, a large amount of energy is consumed.
Further, if we take the case of ethereum platform then it allows only 15 transactions in a single second. Both these platforms consume a lot of energy, and still inefficient when compared with VISA that allows 1667 transactions in a single second. Furthermore, for facilitating four transactions over the Bitcoin platform, we are required to spend power worth 32 terawatt hours, which thereby increases the overall processing cost to multiple folds.
Inability to serve multiple users
Another big reason why blockchain still way too far from many users, is its inability to serve a broad audience with the same efficiency and impact. For example, a financial institution or a bank that has millions of users is required to have a robust platform to serve multiple users at the same time, avoiding a network crash.
Though, there were many blockchain enterprise networks introduced like Corda, hyperledger fabric to provide a solution to this problem, but, unfortunately, these platforms are not so successful in avoiding network crashes. Hence, it is required that these blockchain enterprise projects bring a more robust platform to serve multiple users simultaneously.
User data privacy
We quite often talk about the data transparency over a blockchain network, but it in this view, we forget to observe the negative side of this feature. Data transparency through cuts the need of a middleman to facilitate the transaction, but, at the same time, it allows multiple users to access a data present over the ledger that can be misused by anyone.
For instance, suppose there are two shipping companies company A and company B, who are looking for a better supply chain solution for their organization. Now in case, these two companies avail the services of a blockchain-powered supply chain company C than in that case any of these two companies, which are A and B can view each other’s data and use it to know the business strategy of the competitor.
Lack of knowledge
Though blockchain technology holds enormous potential in solving many issues like smoothing the cross-border transactions, enhancing the remittance market, bringing liquidity of funds, due to inadequate knowledge about this technology like it’s implementation and significance business organizations are not able to take advantage of the features associated with this technology.
For example, consider one of the prominent use cases of blockchain which is healthcare sector in which by the use of this technology the hospital administrators can easily manage patient health records and access them whenever required without any problem. However, due to lack of knowledge, they fail it implement it wisely.
Threat to user security
Many talk about the security features of blockchain, but during this discussion, the majority of people forget to highlight the consequences of adapting to this technology. While private blockchain networks are more secure as compared to the public ones, which allows anyone to run a node within the ecosystem and in case this system gets attacked, the platform loses its credibility.
However, in the case of private blockchain networks, only those users who have the authentication rights are allowed to participate in the activities taking place within the ecosystem thereby this mode is more secure than the former and must be preferred.
Unclear about the regulation
Since in the case of a blockchain network, there are a countless number of nodes associated, so, whenever a transaction takes place over a node, it becomes complicated to track the activity thereby; the authorities are not able to take legal action against any undesirable transaction
Summary
Therefore, we can say that this fresh form of digital technology is still out of reach of millions of people mostly because of lack of knowledge, inferior implementation methods, and higher processing costs associated with it. Thus, blockchain communities are required to take the necessary steps and bring this technology to more people and help in setting a better economy.
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