Blockchain technology promises a lot; it promises to improve security on people’s personal information, improve security on importing and exporting cargo, and even the food we eat. In fact, we’re already seeing industries starting to implement blockchain technology like the gaming industry and the health industry.
But despite how useful blockchain is, there are some awkward problems that developers will have to contend with if they want to see blockchain become more ubiquitous.
Integration is one of the biggest hurdles facing blockchain developers for several reasons which include scalability, regulation, and even technical knowledge. With regards to scalability, blockchain works best when there is a small number of users on the chain, but large blockchains are difficult to work with.
Despite the rise of #POS networks, no POS project has come close to solving the #blockchain trilemma: scalability, security, and decentralization. Read how Kadena, the only scalable #POW project, compares with popular POS networks such as #Solana, #Avalanche, #Cardano, #Alogrand https://t.co/MiSJtHViPL
— Kadena (@kadena_io) April 13, 2021
When the number of users increases on a blockchain network, monetary transitions take a lot longer to process (some take days) which in turn drives costs higher and restricts users on the network.
In these past several months, we’ve seen cryptocurrencies and blockchain technology gain mainstream acceptance and with it has come greater calls for regulation. I believe that is the ultimate irony: for cryptocurrency and blockchain to continue growing, it must now work with the same regulations it was originally designed to be against.
“We’re going to see another round of pretty dramatic attempts at regulating” crypto assets: WEF's head of data, blockchain and digital assets https://t.co/bTEeh0ZVk5
— Lisa Abramowicz (@lisaabramowicz1) April 15, 2021
Regulating blockchains can help in implementing smart contracts which can lead to further investment in the industry, and also a centralized blockchain system can help in a time of crisis, but in order for that to happen, there have to be more people with the technical knowledge.
The fact of the matter is that there simply isn’t a whole lot of qualified personnel to manage blockchain technology, at least not as much as the industry needs. Blockchain technology is still new and currently evolving, at the moment, few people have the skillset and experience to support it.
According to information from social media site LinkedIn, the number one most in-demand hard skill in 2020 was knowledge in blockchain alongside cloud computing and UX design to name a few.
High Energy Consumption
High energy consumption has always been the catch-22 of cryptocurrency and the technology surrounding it, especially as climate change continues to be an existential threat. Researchers at Cambridge University discovered that Bitcoin mining consumes around 130 terawatt-hours a year which is more than the entirety of the country of Jordan or 0.6% of the world’s energy consumption.
The debate continues as many mining organizations seek out ways to continue production while also remaining environmentally friendly.
The one thing I believe will help out blockchain is a change of public perception. The majority recognize/associate blockchain strictly with bitcoin and other cryptocurrencies and I believe that misconception inhibits a better understanding and subsequent implementation of blockchain technology.
Many companies, large and small, have a lack of awareness of the subject matter and through that, a sense of distrust that doesn’t allow for the exploration of ideas.