Blockchain will not work for payments without better standards

After the historic rise of Bitcoin in 2017, cryptocurrencies and blockchain technology continue to make waves in the world of traditional finance and emerging technologies. However, despite the unprecedented growth of blockchain, the lack of real-time transaction settlement, scalability issues and standardization problems threaten to block technology from piercing to mainstream.

Addressing some of these obstacles, Deloitte recently published a report highlighting five "progress vectors" that could help industry overcome its current limitations: increased productivity and performance; raising standards and interoperability; reduce the costs and the complexities involved in the construction and implementation of blockchain-based solutions; provide greater regulatory support; and multiplying the dedicated consortia.

In terms of throughput and performance, globalization and digitalization require companies to be able to handle more transactions than ever before. Customers, both online and offline, require fast transaction processing. To remain competitive, companies must constantly adapt and evolve their business strategy to meet these standards.

Companies also do not have the luxury of frequently changing the lower level of their ecosystem, as many lack the ability to properly learn these technical changes. A standard for protocol levels and interoperability between protocols is needed to lower the threshold for companies seeking to adopt the technology.

As with any new technology in its early stages, the adoption of blockchain may be affected by suboptimal integration and high training costs. Currently, most new projects seem to build blockchain solutions without considering completely whether people will actually be able to use it or not. Reducing costs and complexity will be part of the hard battle for companies trying to implement decentralized technologies, but the first step companies and projects should take to avoid unnecessary expenses is proving that their product is user-friendly.

Another obstacle in the adoption of the blockchain is the lack of regulatory support, and the uncertainty surrounding the entire sector is a huge obstacle to business adoption. Organizations are not willing to explore or implement a technology without knowing at least what the potential regulations will be.

Finally, having the right industry associations and partners is essential for companies looking to adopt blockchain and attract the attention of potential users.