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One of the most disruptive technologies in recent decades is Blockchain, best known as bitcoin’s underlying technology. Platforms like Quantum Ai Canada develop the best trading algorithm that is exceptionally suitable for beginner bitcoin traders.
Many people are excited about Blockchain’s potential to reduce corruption and fraud by providing transparency into how goods are sourced and sold – but others think the risks outweigh the benefits.
Blockchain has been called “too big for one company,” suggesting it will eventually be too much for any single company or organization to manage independently. So what are the challenges involved in blockchain adoption?
1. Blockchain’s “one size fits all” premise doesn’t work.
If your company works in one market, following a specific protocol, how do you justify adopting a disruptive technology like Blockchain when it requires you to change everything about your business from the ground up?
Unfortunately, there is no simple answer here, and you must ask yourself if Blockchain is worth the pain. Unfortunately, for most companies today, it is not.
It would be best if you considered whether or not adopting Blockchain could potentially put your company at risk in ways that outweigh the potential benefits. It is particularly true for companies working across multiple markets and industries.
2. Blockchain is facing heavy criticism from a lot of experts.
For various reasons, Blockchain has come under fire from many experts in the past few years. “It’s a solution in search of a problem” and “it’s too early in its development” are just some complaints about Blockchain by experts.
While there is no denying that Blockchain has the potential to change how you do business, you should be cautious about making any hasty decisions. The criticism faced by Blockchain is due to many possible reasons.
Blockchain is still in its infancy, with plenty of bugs and issues that must be dealt with first. As a result, there are still a lot of hoops to jump through before it can be deemed a viable mainstream solution.
Nevertheless, it is a challenge faced by many disruptive technologies – they offer great promise in theory. Still, when considered at a large scale, the problems appear rapidly and frequently enough that it’s hard to see them solved quickly or cheaply.
3. Blockchain can be tricky to integrate with legacy systems and tech.
One of the most significant issues with using Blockchain is that it only works individually; it must work alongside centralized databases and other technology.
It means that the integration of Blockchain with legacy systems will require a lot of careful planning on the part. At this point, most companies are best off sticking with current applications that work and work well. Blockchain’s benefits are too speculative to justify any drastic changes.
4. It involves a lot of effort to implement and maintain.
One of the significant risks with Blockchain is that the value proposition of Blockchain is that it is a decentralized network, created peer-to-peer with no single point of failure.
However, this decentralization comes at a tremendous cost when you have to work hard to figure out how to use it effectively.
Let’s face it; not all organizations are ready or willing to make significant changes in their business that involve devoting an enormous amount of resources so that they can deploy an experimental technology that might or might not be successful in the end.
5. It’s slow and expensive to move everything from paper documents into digital form on Blockchain.
The sheer volume of new information and data that needs to be stored digitally is staggering. Add in need to update data, and the already daunting task becomes even more difficult.
In addition, the amount of time necessary to migrate your business’s data into a blockchain solution is significant – not only must you think about your entire supply chain processes before you start, but now you have to think about all the extra paper documents that will need to be digitized and synchronized with your blockchain solution as well.
6. Blockchain is going to solve only some things for you.
We’re all frustrated with our current systems and the lack of efficiency in our industry. However, Blockchain will not be some magic bullet that will fix everything – it’s a single piece of technology that needs to be implemented alongside other innovations.
It would help if you had the right amount of technology and the right mix of factors, including a supportive regulatory environment, human capital, and financial resources, to make any new technology work for you.
While Blockchain is a disruptive technology, it is still too experimental for most companies today to consider incorporating it into their operations.
7. Addressing threats associated with Blockchain will require hefty costs.
To assess the threats posed by Blockchain, you’ll need to consider the costs and benefits of using Blockchain in your supply chain.
While this is undoubtedly worth assessing, businesses must carefully weigh the cost against the benefits before determining if Blockchain is viable for their industry.
8. It isn’t easy to shut down.
The biggest challenge with Blockchain for companies today is that once implemented, it’s challenging to turn off or modify as needed without muddying up its effectiveness and making it more challenging to do business across multiple markets and industries.
With a traditional centralized database, there are always ways in which it can be modified or shut down if necessary – the same cannot be said of Blockchain at this point.
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