Reasons Why Blockchain Adoption Is Slowing Down

It hasn’t been long since the Blockchain technology came into existence and within a short timespan, it took the whole world by storm. With its innumerable applications and use cases in almost every industry, the world went crazy for this digital ledger technology, making it the most sought-after technology after Artificial Intelligence. However, this year so far is not turning as good for Blockchain as it used to be.

A large number of software projects based on Blockchain are winding down by the end of this year mainly due to a lack of support from the outside community. At the same time, many companies are refraining from moving ahead with their blockchain ventures owing to the devalution of cryptocurrencies in the worldwide market.    

Even the high-profile Blockchain enthusiasts are not showing genuine interest in the distributed ledger technology these days. Many companies that were supposed to implement Blockchain in most of their business operations are experiencing uneven delays in doing so. As a result, the annual worldwide spend on Blockchain is also depreciating. As of today, more than 50% spend on Blockchain technology is currently initiated by IBM and Microsoft alone which is a clear indication that other companies are not actively using this technology in their operations. But what can possibly be the bottlenecks that are slowing down the growth and adoption of this most innovative ledger technology across various business niches? Let’s find out!

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The Reputation

Blockchain has come a long way ahead since the day of its inception. It’s not just the underlying technology behind Bitcoin and cryptocurrencies anymore. Blockchain has come to be known as the most advanced crypto-based ledger technology that can possibly reshape the world through its flabbergasting aspects. But the old perceptions are still there. The dilapidated association with cryptocurrencies is still proving quite detrimental for blockchain especially due to the bad reputation of cryptocurrencies in most of the countries. However, the public perception of Blockchain is gradually improving, this is still one of the main bottlenecks that’s still causing companies to refrain from the implementation of Blockchain in their business processes.

Scalability Issues

Scalability has been a major roadblock in Blockchain since the very beginning. As the number of Blockchain users increases, the network becomes congested and it gets difficult to validate each and every transaction into blocks that are already limited. The same thing happens with other types of data that are stored on Blockchain. To make things worse, a size limit is assigned to each and every block which can’t be exceeded in any case. This also causes a delay in the validation of data since a new block needs to be created to store any new information in case the previous block is full.

Privacy & Interoperability

As we all know, Blockchain is a public network with a high level of transparency. The data stored on Blockchain is publically visible in such a way that if any activity happens in the network, it is clearly visible to all the nodes. But this can cause a serious trouble to the organizations where confidentiality is maintained within different levels of hierarchy. For this reason, companies have to opt for Private or Permissioned Blockchains that are less decentralized and less secure.    

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The Reality

So these were some of the reasons that have more or less, contributed towards slowing down the adoption of Blockchain across various industries. Now if we talk about each of these issues separately, we’ll see that most of these are hypothetical and are far from reality. Yes, Blockchain has been the underlying technology behind Cryptocurrencies. It still is. But when it is used to store user data rather than the transactions, it is safer than the safest systems on earth, if that’s what you need to know. Cryptocurrencies are just one of the many applications of Blockchain and it’s completely up to you how you want to use it.