Blockchain technology has faced challenge upon challenge over the last decade, and yet emerged (mostly) intact. The technology is still, however, in its early stages and has progress to make before it comes into the mainstream.
Blockchain’s place in the wider business world is still expanding and will take time to cultivate. Blockchain faces three major hurdles in 2020, and in the decade ahead, which businesses will need to face with caution and patience.
The power of regulation and laws to stop a blockchain project in its tracks was evident when Facebook announced its cryptocurrency Libra. Facing regulatory issues at every turn meant the project has been largely stymied.
The project was originally backed by the Libra Association, who each put millions of dollars into the project. After legal problems in 2019, PayPal left the Association, soon followed by eBay, Mastercard, Stripe, Visa, Mercado Pago and Bookings Holdings, and Vodafone in January 2020.
The project’s ultimate roadblock came from its inability to comply with regulations. This is in part because the technology and its regulations, in their current state, are not mature enough to deal with such a major project. While somebody (in this case Facebook) needs to pioneer the way, this needs to be done properly.
Over the next decade, the current regulatory laws will need to expand to allow both blockchain and cryptocurrency to have unique regulations and rules.
While interoperability remains at the back of everyone’s thoughts, blockchain projects remain siloed from one another. Businesses will need to accept the necessity of interoperability in a wider sense, despite the fact that it might not benefit them immediately.
Even if there are very few blockchain protocols that remain relevant (many tout Ethereum and Bitcoin as the two primary ones), there’s still a necessity for interoperability in both data and in crypto exchange.
We need realistic proof of concepts and real-life implementations to ensure the success of our blockchain projects. This means that companies will have to take the step towards demonstrating their own products and platforms to assert that blockchain projects exist – they’re not merely spoken about or marketed.
Consumers also need to see the value for them on a higher level. Right now, they’re bombarded with talk of cryptocurrencies, blockchain for business and the ethical potential of blockchain technology.
They need to understand the value for them on a personal level – through data privacy, through accessible entertainment and through a more efficient and cost-saving ecosystem.
Blockhead is bringing blockchain to the forefront with our data tracking platform STAMP. Find out more.