Blockchain adoption barriers can be lowered significantly if five “key issues” can be addressed, according to an article published by Deloitte.
Published on 28 September, the article titled “Blockchain and the five vectors of progress” takes a deep dive into the many issues that are stifling mass adoption of the technology. In order for progress to be made, the article recommends three areas that will “enhance technical feasibility” and two others which call for greater regulatory support and an increase of organizations formed by blockchain enterprises.
Other reports and studies from the global auditing and consulting firm have appeared rather bullish on blockchain, suggesting that businesses that do not adopt and implement the technology will be at risk of falling behind.
Furthermore, a survey that was recently conducted by Deloitte highlighted positive sentiments held by industries across the globe; it found that a vast majority of participants believed that mainstream adoption will come to fruition in the not-so-distant future.
The article somewhat counters these findings by referencing a 2018 Gartner CIO survey which found that 1% of respondent CIOs had managed to “indicate any kind of blockchain adoption”, with another 8% working on either a pilot or were in short-term planning phases.
It goes on to argue that blockchain-based systems as a transaction medium are still too slow with the number one network, Bitcoin, only able to manage up to seven transactions per second and the second largest, Ethereum, around 15.
However, massive improvements have been made, with IBM managing to run 3,500 transactions per second on the Hyperledger Fabric blockchain platform. Furthermore, the article highlights the push to evolve consensus mechanisms as a sign of distinct progress.
Next up is standardization; for any business without blockchain coders and developers on staff, adopting the technology is expensive and time-consuming. This is due to the overflowing number of blockchain projects that are utilizing multiple coding languages, mechanisms and protocols.
Should there be a standard in place, the field will somewhat be leveled and an increase in industry-level participants will be further made possible. The report makes note of the Enterprise Ethereum Alliance (EEA), who are currently working to create a standard Ethereum network software for business.
As the number of participants in the blockchain race grows, it is thought that standardization will prove valuable to collaborations, sharing of blockchain solutions, smoother integration with existing blockchains and cross-blockchain transactions among many others.
Low-cost ease of access
Blockchain solutions are complex and costly, not only to create but also to implement.
Naturally, unintuitive new technologies can ward off even the most open-minded of skeptics, though this is also changing rapidly in the face of industrial giants such as Amazon and IBM launching affordable cloud-based technology as-a-service solutions.
These new services enable companies to dramatically reduce the barriers with blockchain templates, which allow for the simple setup of a “basic blockchain infrastructure”. Ease of development is also on the list of issues presently being conquered with new tools being created by companies such as Google.
Regulation has been one of the hottest topics surrounding the nascent technology in 2018. Countries such as Malta, South Korea, and Switzerland are tipped as the jurisdictions that are leading the regulatory race, with Malta miles ahead of the closest competitor.
Deloitte agrees that regulation is absolutely vital to the future success of blockchain, creating appropriate classifications for cryptocurrencies, defining smart contracts as well as Anti-Money Laundering (AML) and Know-Your-Customer (KYC) policies being high on the order list.
The formation of “blockchain consortia” is the final vector listed as part of the Deloitte’s five critical issue areas; groups of collaborating companies who band together to promote the advancement of the technology can be a powerful catalyst for its adoption.
Like the EEA, they can establish new standards for the tech, lobby governments, develop infrastructure, educate, advise and do much more to speed up progressions with the aforementioned vectors listed.
Conclusively, the article writes:
“It’’s understandable why, despite promising pilots and experiments, executives might wonder when — and even whether — blockchain will be ready for mass adoption. But progress along these vectors is bringing the technology closer to its breakout moment every day.”
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