{"id":16498,"date":"2021-12-14T09:11:43","date_gmt":"2021-12-14T09:11:43","guid":{"rendered":"https:\/\/bulletins.bfconsulting.com\/?p=16498"},"modified":"2021-12-14T09:16:54","modified_gmt":"2021-12-14T09:16:54","slug":"what-s-holding-blockchain-back","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/what-s-holding-blockchain-back\/","title":{"rendered":"What\u2019s Holding Blockchain Back?"},"content":{"rendered":"<p>Though blockchain has many advantages, it still has a lot of growing pains to go through before its full potential can be unlocked. Here are a few of the main challenges blockchain solutions are facing.<\/p>\n<p><a href=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-large wp-image-16508\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-727x1024.jpg\" alt=\"\" width=\"618\" height=\"870\" srcset=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-727x1024.jpg 727w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-213x300.jpg 213w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-768x1082.jpg 768w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-1090x1536.jpg 1090w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en-1453x2048.jpg 1453w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/infogr_en.jpg 1500w\" sizes=\"(max-width: 618px) 100vw, 618px\" \/><\/a><\/p>\n<ul>\n<li><strong>Low Scalability<\/strong> \u2013 blockchain systems are well suited for smaller transaction volumes but are limited in handling larger volumes. Many doubt if they will ever be able to scale appropriately.<\/li>\n<li><strong>Insufficient Speed<\/strong> \u2013 an increased number of users and encryption slow networks down, making the processing of transactions take longer. This makes the technology less and less attractive.<\/li>\n<li><strong>High Energy Consumption<\/strong> \u2013 most blockchain technology needs massive computational power, requiring much energy. In a world focused on mitigating the impact of climate change, blockchain has become less appealing.<\/li>\n<li><strong>Lack of Standardization<\/strong> \u2013 standards are required for any technology to have scalable adoption. As blockchain is relatively new, it suffers from a lack of standardization that will take time to develop.<\/li>\n<li><strong>Lack of Interoperability<\/strong> \u2013 as more and more organizations adopt blockchain solutions, they do so by creating new systems with different characteristics. This leads to systems being unable to communicate with each other.<\/li>\n<li><strong>Regulatory Challenges<\/strong> \u2013 legislators are behind on developing regulations surrounding blockchain, meaning there are no clear rules. Moreover, the regulations that do exist are typically difficult to understand.<\/li>\n<li><strong>Transparency<\/strong> \u2013 while transparency is a strong point for blockchain solutions, it is not always required. In fact, many companies have actively forgone well-known blockchain protocols to ensure trade secrets and other confidential information is protected.<\/li>\n<li><strong>Crime<\/strong> \u2013 the anonymity of blockchain transactions is attractive for criminal activities, be it as a currency (e.g. using bitcoin as a payment method for illicit activities) or as a means to new criminal activities (e.g. hacking cryptocurrency wallets and creating fraudulent crypto projects).<\/li>\n<li><strong>Security<\/strong> \u2013 although blockchain is highly-touted for its enhanced security, it has its vulnerabilities, especially those created by coding flaws and unforeseen loopholes.<\/li>\n<li><strong>Lack of Expertise<\/strong> \u2013 blockchain is new. As such, there is a general lack of qualified specialists to work with blockchain systems. There is also a generalized lack of understanding of how blockchain works, leading to a wider public perception that blockchain is only for cryptocurrencies and money-laundering operations.<\/li>\n<\/ul>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-16498 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='5 ecosystem and B2B solutions for FinTech startups in Southeast Asia'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/5-ecosystem-and-b2b-solutions-for-fintech-startups-in-southeast-asia\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2019\/07\/5-ecosystem-and-b2b-solutions-for-fintech-startups-in-southeast-asia-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-13308\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-13308'>\n\t\t\t\t5 ecosystem and B2B solutions for FinTech startups in Southeast Asia\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='Automatic 100% digital recording protects financial institutions as well as consumers'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/automatic-100-digital-recording-protects-financial-institutions-as-well-as-consumers\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/12\/Improving-Your-Content-to-Drive-a-Better-User-Experience-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-7585\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-7585'>\n\t\t\t\tAutomatic 100% digital recording protects financial institutions as well as consumers\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='European payment provider launches open banking platform'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/european-payment-provider-launches-open-banking-platform\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2019\/06\/european-payment-provider-launches-open-banking-platform-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-12978\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-12978'>\n\t\t\t\tEuropean payment provider launches open banking platform\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Though blockchain has many advantages, it still has a lot of growing pains to go through before its full potential can be unlocked. Here are a few of the main challenges blockchain solutions are facing. Low Scalability \u2013 blockchain systems are well suited for smaller transaction volumes but are limited in handling larger volumes. Many &hellip;<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,16],"tags":[],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/16498"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=16498"}],"version-history":[{"count":2,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/16498\/revisions"}],"predecessor-version":[{"id":16510,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/16498\/revisions\/16510"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=16498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=16498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=16498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}