Blockchain technology is known to streamline business processes, add new business models and even remodel businesses.
As time passes, big corporations and global banks are showing increasing interest in blockchain technology. Even banks like Kodak, HSBC and De Beers are figuring out innovative ways to add blockchain to their business model.
And why not? The technology ensures transparency across business process, be it supply chain management, tax compliance or auditing.
More importantly, the technology helps cut down instances of fraud by enhancing identity management - this aspect of technology is being tested by banks such as HSBC.
That said, enterprise adoption of blockchain technology is not that great.
According to a Gartner report, a meager 1% of CIOs said they had adopted blockchain, while 8% said that were planning or still experimenting with the technology.
For startups adopting this technology is more comfortable as the stakes are not that high and risk is relatively low. However, in the case of large enterprises experimenting with blockchain could mean cannibalizing their existing resources.
Simply put, blockchain adoption by large enterprises is not that easy as several aspects need to be looked into before businesses could take the plunge and add blockchain in their current business model.
Some of the several obstacles businesses faced when it came to mainstream adoption according to a report by Deloitte, include slow transaction speeds, lack of uniform standards between different platforms and solutions, data privacy and intellectual property issues, and even technical complexities in terms of implementation.
But despite these problems, it’s possible to harness the potential of blockchain.
Here are the five areas that blockchain technology will be improvising to meet the business demands in the future:
As per Gartner report blockchain is slow as it can only handle 3 to 7 transactions per second, while some legacy transaction processing system can handle tens of thousands of transactions per second. This makes blockchain unviable for large-scale applications.
That said, developers are working to bridge the performance gap. If implemented, it will be particularly useful for applications in supply chain, auto leasing, healthcare, and trade finance.
Given that there just a couple of blockchain standards in place, it could cause a problem for IT departments as these platforms fail to communicate with each other.
However, platforms such as Enterprise Ethereum Alliance, Hyperledger Foundation and more are coming together to create cross-blockchain transactions, interconnectivity, and standardization. These efforts lead to easier enterprise blockchain adoption.
The cost and complexity are again major blockchain obstructions, which has prompted companies like Amazon, Microsoft, and IBM to offer cloud-based Blockchain as a service.
This will help simplify deployment challenges and increase adoption rates over time.
Most of the businesses cite regulatory issues as an obstacle that’s stopping them from making a massive investment in blockchain technology. The technology includes concepts such as cryptographic signatures and smart contracts that are not part of existing regulations. So policy changes will be required to address these issues. The best part is that they are already underway in many areas. Nearly 17 US state legislatures have passed bills concerning blockchain adoption this year.
The blockchain industry perse is still in its evolution stages and may take some time before full enterprise adoption becomes possible.
The best part is that the technology is showing positive signs of progress and some of the biggest obstacles in terms of cost and complexity are going down. So, if proper support and guidance are provided, businesses could take advantage of this technology to improve their existing processes.
Author Bio: This is Jennifer Warren, staff writer at GoodFirms – a review and research platform for top block chain development companies, digital marketing companies, web development companies among many others. A bookworm at heart, I have successfully guest blogged for top sites such as Crazyegg, Semrush, Searchenginepeople, Sitepronews, Volusion.com, Socialnomics, jeffbullas, mediapost among others.