Three Most Crucial Challenges Facing Blockchain Technology
What are the challenges faced by blockchain technology? Read more on this . Be aware of the short comings.
Image Credits: allanswart
How Is Blockchain Technology Being Viewed?
Overstock.com became the first major retailer accepting Bitcoin as a form of payment nearly five years ago. As of now, it accepts many of the top cryptocurrencies. Subsequently, the Overstock team realized Bitcoin’s underlying blockchain technology holding great promise beyond cryptocurrencies. To reach the full potential, startup companies advancing the use of blockchain would need both financial and human capital support.
To do just that, Overstock set up a venture capital blockchain incubator Medici Ventures. Eventually, the blockchain technology is set to impact many industries that are already involved in promising developments within areas like capital markets, money transmission as well as banking, voting, supply chain, property, and self-sovereign identity. Before blockchain technology realizes its true potential, there is still a long way to go.
The three most important challenges facing widespread adoption of blockchain technology is as follows:
Finding Good Enterprise-Level Blockchain Software Developers
Virtually every company needs software development making the world so reliant on computers. Where demand grows exponentially, good software development is hard to find in this environment. It is rarer to find game-changing talent.
Being a new field of technology, blockchain comes with fewer talented enterprise-level software developers who understand it well. It limits companies from developing engaging and transformative blockchain-based applications even though this is an enviable position for them.
Providing regular training, Medici Ventures helps software developers climb this important learning curve. The training done in educational presentations like those that include accelerated coursework, the team presents discoveries made when developing on one project with the hope of solutions benefitting those working on other projects. Creative development and innovation become rising tides rather than isolated spikes, with the approach letting us cross-pollinate the industries and disciplines.
The reason why portfolio companies rely not just on our venture capital but also human capital, the time spent learning is well worth it. The shortage of great talent will continue to be a struggle for the advancement of technology until there is a regular pipeline of well-qualified blockchain developers.
Avoiding The Temptation Of Regulation
Increasing the awareness and interest in utilizing blockchain technology political engagement helps drive the adoption of these new ideas. It is, unfortunately, bringing the temptation of regulation to an emerging market. The advancement of Blockchain technology should not be regulated. Legislators opted not to regulate it when in the 1990s the internet’s potential was becoming evident. Leading to the open-market creation of the much-lauded ‘information superhighway’, and the power of the internet today was a result of that bipartisan decision.
As blockchain applications develop and proliferate, there will certainly be use cases requiring regulation. But at best, the growth of blockchain technology will be best nurtured when it is free and unfettered from regulation.
Reaching Critical Mass
The great uses of technology are cryptocurrencies and digital wallets built on the blockchain. Consumers need to spend cryptocurrencies more and merchants need to accept them, for cryptocurrencies to proliferate in use and stabilize in price and for digital wallets to get widespread adoption. A great example is Colu, a digital wallet using Blockchain technology to create local currencies. By simply downloading the app, adding money and shop locally the app highlights local establishments as also making shopping convenient. And of course, it dazzles people.
Other blockchain-based applications like secure remote digital voting can be made possible as West Virginia became the first state allowing overseas citizens to vote remotely using a blockchain-driven app.
To create digital voting with strictly theoretical worries, some critics are quick to disparage real efforts. As an example, the rollout in West Virginia comes as a very focused solution to a specific issue that is low overseas voter participation. As the current system is broken, the blockchain-driven digital voting app comes as a clear solution. Until there is an actual reason to worry, anyone, but critics of progress eagerly support West Virginia's efforts.
The impressive software will become an invaluable and ubiquitous tool, once the blockchain application is embraced in sufficient numbers by both the using and accepting sides. Triggering network effects, multiplying the benefits, there comes more widespread adoption of block chain’s most beneficial use cases.
The Final Thoughts
Meaning the adoption probably takes root and blooms quickly, the interconnectedness of the world is something to be looked upon with caution. Blockchain technology has become mainstream when no longer talking about it but simply using it in everyday ways.
It’s thrilling to see digital purchases being made and remote votes cast in elections with the game-changing technology. In the growth and adoption of this world-changing technology, developers, investors and companies continue to focus on using and advancing blockchain as also see that finding good enterprise-level blockchain software developers, those who let blockchain grow free from unnecessary regulation and achieving critical mass use is essential.