Mass Adoption of Blockchain Technology by Entrepreneurs? Major Challenges Are Involved.
Clearly, the benefits of adoption will have to outweigh the costs. And they promise to be considerable.
Wealth management. Improved security. Fluid transactions: You’ve likely seen these benefits of blockchain technology touted before now. And there are more.
Indeed, the blockchain revolution is under way in many sectors. And it’s only a matter of time before your industry is affected, if that hasn’t happened already. Still, while blockchain technology promises to enable seamless transactions for entrepreneurs, its adoption has been anything but.
The reason is that, as happens in most revolutions, this one about the adoption of the blockchain won’t be won without a fight. Even more so, mass adoption of blockchain technology by entrepreneurs will present them with certain challenges they must first overcome.
Yet if the notion of “challenges” portends gloom and doom for you, rest easy; it shouldn’t, because these challenges are negatively affecting the entire blockchain revolution at the moment. Consider the following.
The German physicist Georg Christoph Lichtenberg is reputed to have said, “I cannot say whether things will get better if we change; what I can say is they must change if they are to get better.”
Entrepreneurs adopting blockchain in some industries will face an avalanche of resistance from their peers and other gatekeepers. Forget about the technology’s proposed benefits; some entrepreneurs will just not buy into the idea, and even more so, buy into the notion of regulation.
Ilgor Telyatnikov, president and chief operating officer of Alphapoint, described this issue, saying: “The primary challenge for the broadest adoption of blockchain technology is regulation. The regulatory environment has not caught up to innovation and in many cases prevents or slows the adoption . . .
“As the regulatory framework becomes more established,” Telyatnikov continued, “more products and services that mainstream consumers use will utilize the technology, though in many cases consumers won’t be aware of the change.”
Entrepreneurs in highly regulated industries may need to wait for new regulations to be written for their industry before they can safely adopt blockchain. Additionally, due to the technology’s much-lauded transparency, regulations governing information-sharing may be needed to protect companies, investors and customers. That’s not even mentioning issues with banks and regulatory compliance.
Blockchain technology is still in the nascent stage. Though awareness of it has increased, many entrepreneurs and consumers are still oblivious. Among those who are aware, there’s still a lot of misinformation. As an example, many folks don’t yet know that blockchain technology has other applications outside financial transactions and cryptocurrency.
