Blockchain is perhaps one of the biggest buzzwords in technology today. But, despite that it’s adoption has been significantly slowed.
So, why is this? Here’s the 5 main factors that are blocking the rise of blockchain:
- Slow performance – Blockchain can be notoriously slow and, as a result, isn’t actually seen as a viable option for large-scale applications. Indeed, in contrast to some legacy transaction processing systems able to process tens of thousands of transactions per second, Bitcoin can handle only three to seven transactions per second; the corresponding figure for Ethereum is as low as 15 transactions per second. Until these issues are addressed, the practical use of blockchain will remain highly limited.
- No universal standard – With an increasing number of players in an ever-expanding industry like blockchain, some worry that with so many different networks, no standard exists to allow them to interact with each other. How can companies implement the technology if there’s a chance it won’t interact with their consumers’ or clients’ blockchain?
- A high complexity cost – One of the frequently noted criticisms of bitcoin’s blockchain network is the fact that it relies on intensive computing power — and hence a lot of electricity — in order to run. Just as the slow performance means the technology isn’t scalable, the cost of it means it simply isn’t a feasible option for the majority of individuals.
- A lack of regulation – As cryptocurrency prices spiked last year, regulators became increasingly uneasy about the speculative nature of the market. And the uncertainty of the regulation of the technology continues with things like smart contracts; essentially, blockchain isn’t a safe enough option at the moment.
- Not enough collaboration – The value of blockchain lies in its universal use, and until more firms working in the sector collaborate in order for the technology to promote both the development of applications and education, its uses will be inherently limited.