Potential obstacles to blockchain adoption

There is no doubt that the future of blockchain technology is fraught with uncertainty and difficulties, although it is here to stay. How is your development going? What is the use made en masse and what conditions do they impose for its adoption? These are insurmountable questions. In this article, we’ll look at several short-term obstacles to blockchain growth. These challenges are not in a particular order.

First challenge

The first challenge is that most people have no idea what a blockchain is and have never found it.
What’s more, even those who’ve heard of it have a hard time understanding what it’s all about. A 2016 survey by Deloitte, a consulting firm of the Big Four, found that 40% of executives had little or no idea about the blockchain. Those who understood it did not clearly see its potential either.
When a new technology comes along, the first hurdle is understanding and diffusion, with the blockchain being a more complex concept than most. It will likely take some time for its value to be significantly appreciated. You need to get to that point before you can think about adoption and innovation at scale.

Second challenge

The second challenge is a technical one, because the blockchain is new, takes time to mature, and there are complications with transaction speed, verification, and data management. Remember that the amount of information generated is enormous and must be stored in the blockchain, even if high security is promised. Some privacy issues are still unresolved.

The complexity of integration must also be overcome. If this technology is going to coexist with others in every organization, which I think it will be necessary, a lot of innovation still needs to emerge for it to be possible. Integration requires that there be a way for the various distributed ledgers to communicate with each other. A set of standards — that is, uniform technical criteria, methods, processes and practices — will be required as a prerequisite for the global adoption of the new technology.
There is no such standard for the blockchain yet, but the International Organization for Standardization, ISO has been working on it for a long time.
Related to current technical limitations is the amount of energy required for transactions, especially if they are generated by Bitcoin. Remember that each operation requires the associated computers to solve complex math problems on a large scale, the cost is considerable.
Transactions on the blockchain are anonymous and irreversible. Two features that the basic technological requirements of any system still do not meet. Not that these difficulties cannot be overcome, but the solution must be found.

The blockchain is complicated to use and develop

Finally, in the technical sphere, the blockchain is complicated to use and develop. It takes special skills to program etherum or slockt.it, even to manage a Bitcoin wallet for the phone. It takes technological prowess. These technical difficulties are not trivial.
The last challenge is the category that includes cultural adoption, regulatory acceptance, and resistance to change. Thinking only about the financial sector, it is clear that both cryptocurrencies in general, and the blockchain in particular, have the potential to subvert the status quo.
For example, without financial or banking supervision, sending bitcoins directly to another individual or organization is a major disruption. Finance organizations would have to accept a technology that would ultimately reduce its value. The adoption of a cryptocurrency implies changing regulations, legislation, policies, treaties and agreements, not only between organizations within each country, but between countries on an international scale. If you also embed the blockchain, important challenges will arise for the way organizations and their trade exchanges are managed. In an extreme case, blockchain-type chains could be invented, without authority or oversight, which would in effect replace the existing control. There is support from the international trade ecosystem. Finally, social and organizational culture will not embrace the radicalism of the potential blockchain revolution with open arms.
Many organizations would be reluctant to accept the level of change needed. Much reluctance would be purely word of mouth or she would end up failing compared to those who move quickly into a different future. These challenges are reason for reflection, as none are easy to overcome. As Kevin Kelly notes in his 2016 book The Inevitable. Executives’ first reaction to the promise of the Internet in the 1990s was contempt.
They said consumers will never trust him to buy products or manage their bank accounts. Most believe that content will come under the control of the mainstream media. They were unable to see the coming revolution and preferred to focus on the numerous obstacles they encountered in order not to embrace it. Perhaps we are in a similar situation. There are many reasons to believe that the blockchain will cost to adopt, but there are also reasons to believe that it is even more transformative than the Internet.