The Blockchain technology, since its launch in 2009, has received enormous reactions from finance geeks as well as critics and skeptics. People who are fan of it tout it as revolutionary, going as far as tagging it as the future of finance.
Blockchain surely has the potential to revolutionize and reupholster the financial world as we know it. However, it’s not going to be an easy ride because there are many challenges that the technology needs to face.
Such challenges prevent the mainstream adoption of the technology. Let’s take a look at some of them.
Even though in the long term Blockchain technology offers efficiency, productivity, and lower costs, the amount of resources need to put it in place is quite tremendous. Since the software that is required to run the technology must be developed for the particular firm, it is thus expensive to buy, obtain, and develop. The hardware used for the software is also typically specialized.
In addition to the tools needed to set up the technology, the personnel needed to work on it should also be paid huge amounts of salaries and benefits, since such experts on the new technology are few and far in between.
This tells us that for the small and medium sized enterprises, it might be extremely difficult to utilizetheir very own Blockchain-based system.
If the business really wants to move to a Blockchain-based system completely, it should first overhaul their previous system or find a way to integrate their existing system with the Blockchain solution.
The problem is that it may be difficult for Blockchain solutions to handle all functions that are needed by companies, making it tough to remove completely the legacy systems. That means huge changes should be implemented on the present systems if they want to facilitate a smooth transition.
Of course, such process will take equally large amount of time, funds, and human expertise. In some instances, integrating the Blockchain-based system into an existing legacy system becomes entirely undoable. In such situation, the company may be compelled to acquire entirely new systems that are compatible to the Blockchain solution.
The larger portion of the public population is still quite uninformed about the existence of the Blockchain technology. And those who have heard the word one, two, or more times before still aren’t fully aware of the potential uses and breakthroughs of the technology.
If the Blockchain technology wants to penetrate mainstream, there must first be public buy-in. The problem is that despite the technological revolutions that it has caused, awareness and knowledge of the technology are still only limited to those people directly involved with the usage of such technology.
Moreover, since the Blockchain technology is closely associated with Buy Cryptocurrency, public perceptions still has some parts in it where the technology has something to do with black market dealings, money laundering, and other illegal activities.
If the Blockchain technology should be really adopted in the mainstream, the public should first understand the difference between Bitcoin Market, other digital currencies, and the Blockchain technology that underpins them.