Decentralization is the Future: Why is CBI Program Skeptical to Adapt Block Chain Technology?

Blockchains appear to have limitless potential to disrupt industrial sectors, business procedures, governmental structures, and economic systems. Blockchain technology’s transformative power should not be viewed as a threat to existing governance systems; rather, it should be viewed as an opportunity for national and international institutions to defend the rights of those they represent while also accelerating our collective progress toward our goals. But why are there still issues in adapting the technology?

The Concept of a BlockChain

            Blockchain technology, like many new ideas, elicits a lot of excitement as well as a lot of skepticism. So, what exactly is it good for? In a nutshell, blockchains may help with any procedure that requires users to securely access, verify, send, or store data. This data could include a person’s identity, product shipment history, or a digital asset such as money. Databases, spreadsheets, and ledgers are common tools for storing data about services, people, and their interactions. These systems store a large amount of data, ranging from credit card transactions to medical and financial records.

Drawbacks of Using Blockchain Technology

            One significant blockchain technological difficulty is the network’s technical scalability, which can put pressure on the adaptation process, particularly for public blockchains. The ability to process thousands of transactions per second is a hallmark of legacy transaction networks. Visa, for example, can process over 2000 transactions per second. Because the nodes in the network are purposefully built to handle transactions in an environment of trusted parties, this lack of scalability is not an issue for private blockchain networks.

Aside from the issue above, corporate organizational obstacles arise such as poor governance, a lack of awareness and understanding, a lack of user experience and education, incumbents’ attitudes, or security and privacy issues, including a lack of regulation. Then there’s the productivity conundrum. Finally, but certainly not least, there are cultural and energy consumption/environmental costs to consider.

A Better BlockChain in the Future

            In general, technical breakthroughs require a long time to mature and reach a stable state that can be commercialized. Blockchain, like any other technological innovation, will experience a modest adoption rate in the next years. Even if there are numerous options, it will take some time to overcome all of the obstacles and utilize all of the advantages.

            The aforementioned list of Blockchain adoption issues emphasizes the necessity for technological advancements. And the industry is working hard to solve these. Things will undoubtedly become more comfortable and trigger mass adoption if we can improve these and remove the numerous obstacles.