Blockchain has enormous potential to disrupt and transform business. Experts agree that it can make organizations more efficient, control costs and increase revenue. However, only one percent of CIOs have adopted blockchain and only eight percent are in planning or experimental phases with the technology.
Despite these low current numbers, blockchain technology is improving at a rapid pace, and there are several signs that point to blockchain being well on its way to more widespread enterprise adoption.
Performance Gaps Are Closing
Speed is one of the biggest barriers to widespread blockchain adoption. Many modern transaction platforms can process thousands of transactions per second, whereas blockchain can only process up to seven per second. However, developers are working furiously to close that performance gap to process transactions faster, increasing adoption in areas like finance, healthcare and supply chain management.
Interoperability is Increasing
Another roadblock to enterprise adoption has been limited interoperability and few uniform standards for blockchain. There has been a push in recent months to create cross-blockchain interconnectivity and standards to allow blockchain platforms to communicate with one another, making it more accessible and practical for enterprises.
There has also been a push among major blockchain providers to start implementing uniform standards. Such standards will make investment in blockchain more straightforward and will reduce enterprise risk.
Costs Are Coming Down
As with any emerging technology, costs can be high for early adopters. But as the technology improves and becomes more widespread, those costs will come down. Microsoft, IBM and Amazon have started offering cloud-based blockchain-as-a-service, improving deployment and increasing adoption rates.
Regulations Are Catching Up To Technology
According to a recent Deloitte survey, two out of five executives say regulatory headaches are a major barrier to blockchain investment. Thus far, regulations have not caught up to the technology, making blockchain in its current forms a risky prospect. However, policies are being introduced and implemented to address these challenges.
Are You Ready To Implement Blockchain Technology?
While speed, limited interoperability, cost and regulatory concerns have been major barriers to enterprise adoption of blockchain, those barriers are starting to come down, brick by brick. Blockchain is progressing and performance is being enhanced every day.
If you are interested in learning more about staffing a blockchain implementation, the knowledgeable team at Talon can help. Contact us to speak with one of our staff members today, and see how our expertise and services can benefit you and your business.