Blockchain Adoption has been surrounded by an abundance of hype, which has piqued the interest of many business executives in implementing it while also raising concerns about blockchain challenges and risks. At its most basic, blockchain pertains to peer-to-peer distributed ledger technology that can effectively and permanently document transactions.
1. Lack of adoption: Blockchains are networks that require widespread usage to function properly. There are several reasons to be positive about blockchain usage. Organizations are increasingly banding together and creating joint blockchain working groups to handle common pain points and create solutions that benefit everyone while keeping confidential information private.
2. Skill gap: Blockchain is still a young technology, and the talents required to create and apply it are scarce. To address the skills, divide, companies can use blockchain as a service (BaaS), which allows them to reap the advantages of blockchain without having to spend heavily on the technical talent required.
3. Trust Among users: The third significant barrier to broad adoption is a lack of trust among many blockchain users. This issue has components: organizations may not believe in the technology’s security, and they may not trust other stakeholders on a blockchain network.
4. Financial resources: According to researchers in APQC’s study, the fourth barrier to broad blockchain adoption is a dearth of financial means. Implementing blockchain is not cheap, and for many companies, the pandemic and disruption of 2020 have left funds constrained. Another lesson gained from the pandemic is that organizations, particularly IT departments, can transform quicker than previously believed feasible.
5. Blockchain interoperability: Many organizations have the propensity to create their systems with different characteristics. These distinct blockchains do not interact, and there is presently no universal standard that allows various networks to speak with one another. The ability to exchange, see, and access information across various blockchain networks without the need for a middleman or central authority is an example of blockchain interoperability. Lack of interoperability can make widespread acceptance nearly impossible.