Blockchain technology implementation is being explored in a large number of Industries. This brief article addresses the challenges involved in implementation of Blockchain technology.
Currently, Blockchain technology is the leading buzzword in the tech world. Protagonists think it will revolutionize the financial sectors including real estate, healthcare, law and various other sectors. One of the critical feature of Blockchain technology is the ability to work in a distributed environment with the tamper-proof facility. However, any new technology will always go through a hype stage. It takes a lot of time to get rid of all the challenges and use it to power the modern world. The Blockchain is not different here. Although there are many possibilities, it will still take some time to get over all the challenges.
On this aspect, let’s look at the various challenges of Blockchain technology.
Coding Issues: Even though Blockchain technology has a lot of advantages, still it lacks in several technological ways. A coding flaw or loophole is one of the significant points in this aspect. Bitcoin is one of the example in the regard. But again, the whole system reeks of inefficient designing. Of course, Ethereum tried to cover up all the lackings of Bitcoin, but it is still not enough. For instance, let’s take the decentralized application development. Ethereum allows developers to implement dApps based on their system. And to this date, there have been many dApps based on them.
However, most of them seem to have a matter of false coding and loopholes. Users can utilize these loopholes and hack into the system quickly. So, all that talk about security isn’t strong to defend the malicious code. If we can fix this Blockchain adoption challenge, things will surely become more secure.
Scalability: Blockchain technology is now the key word in the financial Industry. But the Blockchain technology is not capable of handling the scale of financial transactions that occur each day. Since multiple nodes are necessary to validate each transaction. Even the leading Blockchain networks have encountered a decrease in transaction speed and increased fee per transaction. Hence, it remains crucial to research before the Blockchain is adopted on a wide scale.
Interoperability: Blockchain will have to save another pending issue, which is to know how to act before interoperability, or what is the same, the ability of the different Blockchain platforms to communicate with each other and with the infrastructures of the traditional financial system. It is true that there have been interesting advances in this sense, but the Blockchain still does not allow data transfers between chains. This could be solved with crossed chains, which would allow, for example, working at the same time with blocks of information registered in different years.
While the last two years have been marked by an unbridled race to test this technology beyond possible applications in the world of cryptocurrencies, the Blockchain will remain during 2019 as one of the first ten strategic trends to consider in the fields of industry and government at the global level.
Regulation: Several organizations are making Blockchain technology as a means of transaction. You will see many products depended on this. But even now there aren’t any specific regulations about it. So, no one follows any specific rules when it comes to the Blockchain. Now, this is where the issue comes in. Although Blockchain guarantees visibility as one of its benefits, still there is no security. You won’t know for sure if it will be safe for you or not. To get over this challenges, Government and extremely controlled sectors may need to create regulations for Blockchain.