Deloitte: This Five Reasons Are Major Obstacles to Blockchain Adoption
A big audit and consulting firm Deloitte has outlined five reasons that might block Blockchain’s mainstream adoption.
According to them, if Blockchain wants to be adopted by enterprises and institutions on a global scale, they need to overcome five major obstacles. They defined these as in the below:
- The possibility of time-consuming operations
- Lack of standardization
- High costs and complexity blockchain applications
- Regulatory uncertainty
- Collaboration between blockchain related firms
Deloitte stated the area they think needs development the most is possible operational delays on DLT network. The company went onto say global firms are afraid of Blockchain because they are fearing that slow transaction speed could harm their progress and that has prevented Blockchain to be adopted globally.
The company also stated lack of standardization not helping Blockchain either. With standardization, the company referring an ability with enterprises to interact with each other while using Blockchain. They said there are over 6500 active projects globally but most them based on different protocols, different privacy standards, and in different coding languages. The public or private Blockchain also proving to be an issue, according to Deloitte.
In terms of costs, Deloitte thinks big companies like Amazon, IBM and Microsoft have reportedly delivered less complicated implementations by using cloud technologies, not Blockchain.
Deloitte also sent a warning towards the regulation issue. Due to its nature, the company noted smart contracts are very hard to regulate as the concept do not fit into existing laws and frameworks.
The report finished with one last warning. Deloitte noted that the companies using Blockchain need to interact with each other in order to maintain stability and effectiveness. The company says this will also be needed to provide a better education across the industry to help technology to grow even further.