Any emerging technology goes through a hype stage. It takes a while to get the kinks out and for pilots and proofs of concepts to prove use cases and shift the curve to broad adoption. The power and disruption of blockchain is evident in the news almost daily, and people are beginning to understand how blockchain distributed ledger technology works. I’ve previously blogged about soaring investments in pilots and proofs of concepts (POCs) on its security and examples of use cases. Even so, there are several issues currently slowing adoption.
Blockchain adoption is currently crossing the chasm, and I believe the next two years will be critical for resolving issues now slowing broader adoption.
What Are The Obstacles To Adoption?
Regulatory entities often lag technology innovation, and that’s certainly the case with blockchain. New products and services are evolving based on blockchain transactions, but there are currently no regulations on how the transactions should be written. Although auditability and transparency are promised benefits of blockchain, highly regulated industries may need to develop new regs for blockchain. Its distributed ledger transactions are likely to necessitate changes to industry regulations governing financial reporting as well as auditing processes. Information-sharing regulations will likely need to be altered to protect companies as well as their investors and their customers. In addition, laws will need to be enacted that govern blockchain’s smart contracts.