Although there is a lot of focus on blockchain technology right now, evolving the principle of distributed ledgers will require a lot of efforts. The biggest hurdle comes in the form of revamping existing markets and industries, a s this process will take several years to complete. Are we on the brink of a breakthrough, or is all of this talking just blockchain hype?
Putting One’s Money Where One’s Mouth Is
One of the main concerns everyone in the digital currency space should have is whether or not all of these claims about blockchain technology can be backed up. It is a lot easier to promise the moon and the stars on paper compared to delivering a working product or solution. With all of the VC money flowing into blockchain startups as of late, results will need to be produced very soon.
No one is disputing there are legitimate use cases for blockchain technology, as many industries can benefit from embracing distributed ledgers. Although certain advocates will make the case for using centralized databases as an equally viable solution. However, centralized solutions are not only a point of failure but also a breeding ground for legal disputes.
This is where one of the most realistic concerns comes into the picture, as the current level of distributed ledger technology would not provide adequate solutions to most of the problems. Scalability remains a significant issue that seems much harder to solve than developers assumed [or want to admit]. Progress is being made in this regard, but the finish line is not in sight by any means.
Even in the financial sector, using blockchain technology remains a question rather than a proposed solution. Although there are many projects and experiments taking place with this technology, no one seems to be completely sold on distributed ledgers in the financial sector just yet. That is only normal, as the necessary research is still underway.
Moreover, the blockchain has been touted by many industry experts as a cost-cutting measure for nearly every industry. However, there is no indication as to how much money would effectively be saved, or where the savings would come from in the first place. The case is pretty clear for payments and perhaps even remittance, but there is a lot more going on in the financial world than just that.
Source: Social Science Research Network
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