Blockchain technology enthusiasts are not difficult to find these days, as everyone is seemingly working on some project that has to do with distributed ledgers. While all of this positive attention is a notch in the belt of the blockchain concept, there will be some major challenges associated with using this technology. Changing the world as we know it will not happen overnight, and a mind shift will need to take place before consumers and business fully embrace this solution.
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Blockchain Technology And Legacy Systems
Perhaps the biggest issue to overcome is how well legacy systems and blockchain technology can play together. Both types of infrastructure are complete opposites of the other, and creating hybrid solutions will take some time and effort. Despite the obvious flaws present in legacy systems, people are not too keen on trusting the whole decentralized solution either.
It all starts with gaining a proper understanding of what the blockchain is capable of under the hood. That may prove to be a task that will never be finished, as developers have only scratched the surface of what this technology can achieve in the coming years. A lot of focus lies on the financial side of things, yet some people are looking at blockchain technology as a solution for data storage and record keeping, to name a few examples.
Without a proper understanding of this distributed ledger system, it is all but impossible to integrate it into existing infrastructure. Practical examples of how the blockchain will change everything as we know it are great on paper, but implementing these solutions in the real world is a different matter altogether. It is safe to say this is not part of what they teach IT professionals during their career.
But there is an upside to this problem, as various companies are starting to offer blockchain-as-a-service solutions to their customers. Microsoft, IBM, and Consensys are the frontrunners in this regard, as they have thoroughly embraced the concept of blockchain technology. That being said, even with the proper tools at hand, conceptual understanding of this innovation will be a determining factor in its success.
Moreover, one technical solution that can address a lot of problems across different sectors is both a blessing and a curse. Some industries can relate to certain aspects of blockchain technology better than others, creating additional challenges for everyone interested in this innovative concept. None of these problems are insurmountable, but the mind shift will not happen overnight either.
So Much Potential For Blockchain Technology To Succeed
The technology powering the Bitcoin network offers plenty of potential for success in different industries. Finance will remain the central point of focus as Nasdaq has been running multiple experiments based on this technology over the past few months. Other players in the commercial space are looking to file blockchain-related patents.
Blockchain technology can streamline and simplify day-to-day business processes in just about any industry, once people rightly understand what distributed ledgers are capable of. At the same time, the blockchain brings stiff competition to third-party business models, as buyers and sellers would be able to interact with each other directly using this protocol.
Source: CNBC, Flickr