Why We Should Not Fear The Blockchain
The pace of change in modern society is facilitated by rapid advances in technology. One of the most recent technological phenomena to provoke thought on how society can be reorganized is blockchain: cryptographically secured recording of transactions using technology based on distributed ledgers. Protagonists of blockchain advocate its implementation throughout all levels of society to bring about more transparency and decentralize power. However, adoption of this type of technology has been low in light of its nascency, in addition to the fear of change amongst in modern organizational structures, both public and private. Those considering blockchain integrations are in any case cautious, but what do they have to fear?
The organization of society moving from a human-centric system to one managed by machines means automation of processes facilitated by technology. However, organizations are wary of making hasty decisions to adopt the latest technological trends to then later suffer as a new, more complete and advanced product hits the market, making their newly integrated system obsolete.
As such, organisations are cautious in their adoption of blockchain due to the fact that there is currently no clear standard for how different blockchains operate: whether in terms of transaction speed, latency, security, etc. Until such a benchmark is defined by the market as the technology becomes tried and tested, the majority of business will delay blockchain integration, if not altogether.
However, early adoption of a key technology gives organizations first-mover advantage that can later pay off dividends. A Harvard Business Review study shows that resistance to change is the biggest hindrance to technological adoption in any sphere, with 34% citing legacy systems present themselves as an obstacle. Yet the same study shows a strong correlation between adoption of technology at an earlier stage and improved outcome for the business.
The fact that blockchain is misunderstood is hampering its adoption, with many believing that blockchain is in essence cryptocurrency. However, cryptocurrency is based on blockchain and not the other way around. This misunderstanding has even boiled over to equating blockchain to distributed ledger technology and synonymous use of the terms.
