This article was first published on æternity blog - Medium
Blockchain technology is “not there yet”. Here are five obstacles on the road to mass adoption.
Blockchain technology deals with trust management in a largely digital global economy. Every little perk that makes our lives more efficient and enjoyable is a product of a complex international trade system composed of innumerable hubs and spokes. Some provide logistics support, others provide legal services, yet others deal with risk management and insurance.
All of them, however, deal with trust.
In order for even the most simple business transaction to take place, trust between the parties involved must be present. Usually this trust is vested in an external, third party that can interfere as needed and settle any conflicts (and must also be trusted).
That has been the standard approach for the last couple of thousands of years mainly due to the absence of suitable technology. The issues of trust (or the lack of it) were solved by vesting trust in various legal entities, institutions and private individuals.
With the development of more advanced technology, however, it becomes possible to solve at least a part of these “trust issues” with transparent math algorithms based on game theoretic assumptions, and physics-based protection. That is the fundamental value proposition of blockchain technology.
The idea is that by employing blockchain technology, we can change the trust paradigm and by doing this, we can transform society: from financial services and trade, to democracy and decision-making — just blockchain it!
This assumption is, however, yet so controversial and largely untested, that it simply sounds like science fiction to many.
Especially those who have spent decades either getting accustomed to or thriving from the inefficiencies of the current system — their position (“keep the status quo”) is further fortified by the deficiencies plaguing the first blockchain iterations.
At present, businesses that try to ...
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æternity blog - Medium