Deloitte Identifies Five Obstacles to Blockchain’s Widespread Introduction
Deloitte Identifies 5 Obstacles to Blockchain’s Widespread Introduction
The new study of the audit and consulting giant indicates which areas shall be developed for the success of technology.
Deloitte, one of the largest audit and consulting firms in the world, has published a study outlining five basic areas of development for blockchain technology to achieve widespread adoption.
According to Deloitte analysts, in order to be adopted by enterprises on a mass scale, blockchain technology should overcome five major obstacles:
• time-consuming operations;
• lack of standardization;
• high cost and complex blockchain applications;
• regulation uncertainty;
• absence of collaboration between blockchain companies.
In an attempt to identify the area that requires the most development, Deloitte highlighted the problem of possible operational delays on a distributed network. The company emphasized that slow transaction speed is one of the main reasons for many players to avoid considering blockchain as a technology applicable for “large-scale applications”.
Another major obstacle for blockchain on the path to widespread adoption is lack of standardization. Deloitte points out that lack of standardization prevents technology providers from interacting with each other. In its study, the consulting giant cites the fact that there are already over 6,500 active blockchain projects on GitHub, most of which are based on different protocols, consensuses, privacy measures and programming languages.
Among the other areas for development, Deloitte notes the necessity to reduce both the costs and complexity of network operations, the importance of innovation-supporting regulation, as well as the crucial role of collaboration between blockchain companies.
In terms of costs and complexity of new technologies, Deloitte refers to major technology giants such as Amazon, IBM and Microsoft that provide less complicated blockchain implementations by using cloud technologies and reducing the costs of operations on network.
Among the most important issues related to the regulation of the industry, the difficulty of regulating smart contracts, which do not always fit into the existing regulatory frameworks is highlighted.
The final point of the report notes the importance of collaboration between companies engaged in blockchain development to push forward the new ways of applying technology and to provide better education in this sector. The increasing number of blockchain consortia, such as R3, is a “bullish sign” for the market because the value of blockchain as a technology increases with the number of users.