A report written by three analysts at Deloitte explains the barriers to the adoption of the blockchain and how the "five progress vectors" can help companies reduce costs and the risk of implementing and exploring technology.
The Deloitte report analyzes the barriers that fall into the widespread adoption of Blockchain
As a means of processing transactions, blockchain-based systems have been relatively slow.
As a result, only nine percent of CIOs said their organization implemented blockchain projects or plans within a year, according to a recent survey.
But this is about to change thanks to the development of new consensus mechanisms, which promise significantly higher performance by reducing energy-intensive time and mining and the number of nodes needed to validate a transaction.
IBM researchers recently tested an application running on Hyperledger Fabric that achieved a throughput of 3,500 transactions per second with less than one second latency. Increased blockchain speeds will enable applications in areas such as commercial finance, supply chain tracking, car leasing, marine insurance, health care and insurance.
In addition to increasing throughput and performance, the blockchain community is also improving standards and interoperability that could help companies collaborate on application development, validate concept demonstrations and share blockchain solutions.
The Enterprise Ethereum Alliance, the Hyperledger Foundation and the Decentralized Identity Foundation are prime examples of standardization efforts.
To reduce complexity and cost, Amazon, IBM, Microsoft and others offer cloud-based blockchain technology as a service. These include blockchain models intended to automate the configuration of the basic blockchain infrastructure and reduce application development from months to days. In addition, the new software platforms facilitate the work of blockchain developers with new tools such as modular projects that hide complexity.
Furthermore, regulatory issues have been a major obstacle to the adoption of blockchain in past years, but the report states that the US government is now in action. This has seen dozens of laws passed by 17 US state legislatures, covering areas such as the recognition of cryptographic signatures, the definition and use of smart contracts and the use of blockchains for the maintenance of corporate records . The 2018 Joint Congressional Economic Report required a common and coordinated regulatory framework.
"There is still a lot of work to do before the major regulatory barriers to the adoption of blockchain are clarified, but the momentum is building in. Continued progress here is a vector of progress that will help 39; adoption of blockchain technology ".
Finally, the number of active blockchain consortia has increased from 28 in 2017 to over 605.
"The increasing participation of companies, technology providers, regulators and governments is a vector of progress in the development of blockchain that will contribute to increasing the adoption of technology," the report said. "Progress along these carriers is bringing technology closer to its time of escape every day".
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