The idea of providing trust via a distributed network instead of a centralized authority is mind-blowing, and it has the potential to offer benefits to digital rights management, finance, supply chain management, voting systems, and so many other areas.
But there are also some obstacles that could obstruct mainstream adoption of blockchain technology. Knowing these obstacles will make it easier to tackle them in the adoption curve of the technology, it will also help to provide a thriving blockchain ecosystem in the future. Here are some things you need to keep in mind as this technology emerges.
Saying the hype in the blockchain space is too much would be an irony. Despite some suggestions by some of the press in the blockchain space, it isn’t the solution to all the issues. There are lots of areas where it would make a whole lot of sense to use blockchain-based systems to replace current systems.
This matters a lot because overpromising in relation to an evolving tech has costs. When lofty promises are not achieved, the resulting loss of trustworthiness makes it difficult for anyone in the ecosystem, including a lot of blockchain entrepreneurs that are being careful not to overpromise.
Cybersecurity is a very big challenge in the digital sphere, especially for emerging set of services that are created around blockchain technologies. The reason is that the addition to the conventional cybersecurity issue of adapting to a fast-changing cyber threat landscape, with blockchain the fundamental ecosystem itself is also changing much faster than other domains.
Finding the Appropriate Balance in Regulation
Overregulation is also an obstacle to innovation. But it would not be realistic to proclaim that the context of blockchain technologies shouldn’t have a role for regulation. After all, the technology is being utilized in several ways such as entering contracts, moving money, issuing securities, etc.
Hence, it will be crucial for people in the blockchain space to engage with regulators and legislators as they can understand the tech and its diverse applications better.