Though the potential of blockchain to disrupt industries is groundbreaking, it suffers from multiple obstacles that prevent it from mainstream adoption. Deloitte has studied five areas that should continue to be addressed and then progressed before the technology can become the norm
1. Increase Throughput and Performance
It is evident that blockchain has a problem with scalability. Two of the most popular blockchain platforms, Bitcoin and Ethereum, can only transact three to seven TPS. More advance consensus mechanisms are being explored and built by blockchain architects to tackle the technology’s with sluggish throughput.
2. Enhancing Standards and Interoperability
Blockchain allows developers and coders the freedom to alter it. There are 6,500 active blockchain projects in Github that use different coding languages, protocols, consensus mechanisms, and privacy measures.
Groups such as Enterprise Ethereum Alliance, Hyperledger Foundation, and the Decentralized Identity Foundation are formed with the goal of standardizing blockchain. Standardization can help with validating proofs of concept and enterprises collaborating and sharing blockchain solutions.
3. Reducing Complexity and Cost
Amazon, IBM, and Microsoft offer cloud-based blockchain technology to automate basic blockchain infrastructure setup. This is beneficial since it reduces time needed for application development to days instead of months, which also makes it more cost effective.
4. Regulatory Support
Regulatory issues act as a barrier to investment in blockchain. This is according to Deloitte who has surveyed blockchain proficient executives. Governments and legislators are beginning to act in order to draft laws and rules and regulations to facilitate blockchain technology and cryptocurrencies.
5. Multiplying Consortia
Groups of startups and companies are banding together to advance shared objectives for this emerging technology. Different consortia have different goals. Some focus on setting standards and developing infrastructure, while others lean on conducting research and working as advisers to their member companies.
Blockchain, when its scalability is improved, its technological standards and markets are protected, its cost reduced, and its consortium vibrant then we can see the technology inch closer to mass adoption.