While Blockchain is often perceived as world-changing technology, it still has some issues to work out. For the most part, it’s true. It eliminated plenty of data problems but it’s not a universal cure for everything. Let’s discuss the main problems people face with this technology.
Top 5 problems to be aware of:
1. The lack of regulation makes it risky.
Blockchain networks don’t have regulatory oversight. This leads to numerous scams, market manipulations, etc. Even those who decide to stick to the already-established cryptocurrencies like Bitcoin, Litecoin or Ethereum, still risk being hacked and losing all the money in the e-wallet. While no one has managed to hack the encryption, there are other security issues users face.
2. It has an environmental cost.
As long as humanity keeps using Blockchain the way it uses the tech today, plenty of computing power is required. One of the problems with Blockchain is that it relies on encryption to ensure security measures. To prove a user has the right to access the data, it runs many complex algorithms that, in turn, need expensive computing power. People have difficulties understanding why they need it and who is going to pay for these resources.
3. Most users fail to appreciate the complexity of the technology.
Blockchain has the potential for revolutionary applications. However, ordinary people who have never dealt with it, need some reading and time to understand even a general idea about this technology. What’s more, they don’t see the point in switching to Blockchain as they believe the traditional bank protection is quite enough and costs less.
4. The technology can be slow and too complex.
Blockchain transaction needs time to process due to all the complex algorithms and various encryption methods. Compared to traditional payment systems, they require too much time and resources. This makes it hard to use technology even for everyday shopping. No one wants to wait for hours while the payment is finalized. Otherwise, it turns into a huge risk.
5. Certain organizations are interested in making technology fail.
To be honest, despite all the advantages Blockchain offers, plenty of “establishments” wish it disappeared. For example, banks make lots of money working as a third-party intermediate for millions of daily transactions. Blockchain is likely to change things a lot for them. Some other organizations also fail to accept the possibilities that come with technology. The lack of regulators of this decentralized system has become a challenge that can’t be eliminated overnight.
All in all, Blockchain has a lot to offer. Yet, there are several problems it still has to resolve to move on and get more widespread. Today, we’ve discussed the main issues. They prevent the technology from reinventing the business and world as we know it. Other challenges include problems with organization, awareness, and culture. Since it’s a complete shift from the traditional ways to handle things, the question arises: how will Blockchain impact the business strategy & processes, organizational structure, governance, and legacy systems?