We agree that the talk around Blockchain being the next big thing in technology has been happening for a while now. Still, failure to see widespread adoption has led some to express alternate viewpoints as to why the technology has yet to see wide adoption. To debunk this, we wanted to highlight some of the key reasons why the technology has yet to experience widespread use and why we believe it is only a matter of time before Blockchain becomes mainstream.
The Infrastructure Is Expensive
One of the most significant barriers is the cost. Back In 2016, Bundesbank and Deutsche Boerse launched a project to manage financial transactions in Blockchain and reported,
“the process took a bit longer and resulted in relatively high computational costs.”
This can be traced to the cost of blockchain developers being more than 150,000 USD per year in addition to the many other resources needed to get a blockchain application up and running. For businesses who cannot identify a use case and present a positive return, many have been led to believe it’s better not to begin developing a solution at all.
A Lack of Understanding
One of the biggest reasons for Blockchain not being adopted by the masses is because those who don’t work in the industry don’t understand it. For example, an article on Techradar shares,
“Half of brits say they don’t trust blockchain, and wouldn’t trust companies that use it.”
Furthermore, few developers are equipped with the knowledge of Solidity, the complex language that backs the Blockchain. Additionally, the terminology is also challenging to understand, and common phrases and slang involve many words that are not commonplace in everyday businesses. As a result, further awareness and education will be needed to trust the technology will benefit them.
This is not a limiting factor for the technology and instead is only a temporary roadblock. After all, there was a time when people didn’t understand websites, SEO or SERP, and now these have become common strategies that businesses all use to drive traffic to their websites and make sales for their business. Rather than writing off Blockchain entirely, we encourage you to take the belief that it is only a matter of time before distributed ledgers are discussed in the boardroom.
Blockchain is Not Easy to Deploy
Currently, few technical teams are equipped to create and manage blockchain infrastructure. This leaves investments into this technology to the organizations with substantial enough revenue to invest in Blockchain projects. Furthermore, while many companies have claimed to invest in projects, few projects are still actively being used, on average only surviving 1.22 years. This is a good indicator that companies face difficulties when developing market-ready applications to use within their business. But should they necessarily be expected to?
Let’s go back to the website analogy. If your business doesn’t have a team of website designers or HTML coders in-house, your team’s chances of developing your website from scratch are small. Instead, it makes more sense to outsource the technology to someone who builds websites day in and day out and use a packaged solution that you can be easily taught to change the colours or add photos of your business. Similarly, companies struggle to create a custom solution when building a team to create a blockchain. At the same time, many are having difficulty understanding why the answer is quite simple. Blockchain isn’t in their core competency, so outsourcing to a business specializing in blockchain deployment and ongoing maintenance can prove more cost-effective, especially in the interim.
Although a few barriers exist before Blockchain is widely adopted, many companies are still interested in the technology. They are awaiting a clear return on investment (ROI) and a cost-effective opportunity to implement them. However, the Arckadl team has developed a cloud-based Blockchain platform to address the three concerns listed above. With the Arckadl platform, enterprises and service providers can build, maintain and integrate any device to the underlying blockchain infrastructure. Cost effectiveness and easy deployment can be achieved through blockchain session controllers (BSC) which allow fast integration with smart AI and ML features. The platform is on its way to be released and is already in beta mode for a few key service providers and global enterprises.
Let’s experiment. If you agree with the ideas presented, shoot us a clap. On the other hand, if Blockchain still seems a little ways away even with the Arckadl solution, tell us why you think so by leaving a comment below.