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    Challenges of Blockchain Tech

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    SUSWANI
    The document discusses several challenges associated with blockchain technology including a lack of awareness and understanding, organizations developing competing standards, a significant cultural shift required, high costs and inefficiencies, regulations struggling to keep pace with advances, and security and privacy concerns regarding personally identifiable information.

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    Challenges of Blockchain Tech

    Uploaded by

    SUSWANI
    23 views1 page
    The document discusses several challenges associated with blockchain technology including a lack of awareness and understanding, organizations developing competing standards, a significant cultural shift required, high costs and inefficiencies, regulations struggling to keep pace with advances, and security and privacy concerns regarding personally identifiable information.

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    Challenges of blockchain tech

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    The document discusses several challenges associated with blockchain technology including a lack of awareness and understanding, organizations developing competing standards, a significant cultural shift required, high costs and inefficiencies, regulations struggling to keep pace with advances, and security and privacy concerns regarding personally identifiable information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views1 page

    Challenges of Blockchain Tech

    Uploaded by

    SUSWANI
    The document discusses several challenges associated with blockchain technology including a lack of awareness and understanding, organizations developing competing standards, a significant cultural shift required, high costs and inefficiencies, regulations struggling to keep pace with advances, and security and privacy concerns regarding personally identifiable information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Awarness and understanding:

    The principal challenge associated with blockchain is a lack of awareness of the technology,
    especially in sectors other than banking, and a widespread lack of understanding of how it works.

    Organisations:

    The blockchain creates most value for organisations when they work together on areas of shared
    pain or shared opportunity – especially problems particular to each industry sector. organisations
    are developing their own blockchains and applications to run on top of them. In any one industry
    sector, many different chains are therefore being developed by many different organisations to
    many different standards. This defeats the purpose of distributed ledgers, fails to harness network
    effects and can be less efficient than current approaches.

    Culture:

    A blockchain represents a total shift away from the traditional ways of doing things – even for
    industries that have already seen significant transformation from digital technologies. It places trust
    and authority in a decentralised network rather than in a powerful central institution. And for most,
    this loss of control can be deeply unsettling. It has been estimated that a blockchain is about 80 per
    cent business process change and 20 per cent technology implementation.33 This means that a
    more imaginative approach is needed to understand opportunities and also how things will change.

    Cost and efficiency:

    The speed and effectiveness with which blockchain networks can execute peer-to-peer transactions
    comes at a high aggregate cost, which is greater for some types of blockchain than others. This
    inefficiency arises because each node performs the same tasks as every other node on its own copy
    of the data in an attempt to be the first to find a solution. For the Bitcoin network, for example,
    which uses a proof-of-work approach in lieu of trusting participants in the network, the total running
    costs associated with validating and sharing transactions on the public ledger.

    Regulation:

    Regulations have always struggled to keep up with advances in technology. Indeed, some
    technologies like the Bitcoin blockchain bypass regulation completely to tackle inefficiencies in
    conventional intermediated payment networks

    Security and privacy:

    While cryptocurrencies like Bitcoin offer pseudonymity (Bitcoin transactions are tied to ‘wallets’
    rather than to individuals), many potential applications of the blockchain require smart transactions
    and contracts to be indisputably linked to known identities, and thus raise important questions
    about privacy and the security of the data stored and accessible on the shared ledger.

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