Blockchain technology has been around for over a decade, yet many people do not use this relatively new (yes, still new!) technology. However, in the last couple of years, we have observed that private blockchain technology revolutionized various industries, including finance, healthcare, and logistics. Many people still don’t use blockchain! Why? I am going to share my view on this. If you want to share your view, please comment below.
If you are a reader who does not know much about this relatively new technology, then here is a simple definition for you:
What is Blockchain Technology?
Blockchain is a decentralized ledger technology that enables secure, transparent, and tamper-proof transactions. It consists of a network of computers that collectively validate and record transactions in blocks, which are then linked to form a chain.
Once a transaction is recorded on the blockchain, it cannot be altered or deleted, making it a secure and trustworthy method of storing and transferring data. However, you can also find private blockchains which are not decentralized.
Why Do Not People Use Blockchain?
Here I am going to share five reasons that I think are relevant to such a complicated topic. There can be plenty of other reasons too! I feel the following reasons are the most important:
Lack of Understanding of this Complicated Process
One of the main reasons why people don’t use blockchain technology is a lack of understanding. Blockchain is a complex technology that requires some level of technical knowledge to understand fully.
Many people find it difficult to grasp the concept of a decentralized network, consensus algorithms, and smart contracts. As a result, they are hesitant to use blockchain technology or invest in blockchain-based projects.
Scalability Issues of Blockchains
Blockchain networks, especially public ones like Bitcoin and Ethereum, have limited transaction throughput, which can result in slow transaction processing times and high fees. It makes blockchain-based applications and services unappealing to users who value speed and efficiency.
Moreover, people also think a lack of scalability may lead to security concerns because any heavy-pocket individual can control the system. Now comes the third point:
Security Concerns of Blockchain
Although blockchain technology is known for its security, it is not immune to attacks. In recent years, several high-profile incidents have shaken public confidence in blockchain technology.
For example, the DAO incident in 2016 resulted in the loss of over $50 million worth of Ether. As a result, many people are skeptical about the security of blockchain-based projects.
The regulatory environment around blockchain technology is still uncertain in many countries. I also feel it is difficult for blockchain-based projects to operate and for users to feel confident using them.
Some countries have outright banned cryptocurrencies and blockchain-based projects, while others have strict regulations that make it difficult for startups to enter the market.
Lack of User-friendly Applications
Finally, many people don’t use blockchain technology because there is a lack of user-friendly applications. Most blockchain-based applications and services require users to have some level of technical knowledge to use them effectively. It makes them unappealing to the general public, who may not have the time or inclination to learn how to use them.
Solution to Encourage the Use of Blockchain Technology
Indeed, it is a complex problem, but I feel there are some solutions too. Some of the solutions worth sharing are:
Education and Resources of Blockchain
One of the key solutions to encourage the use of blockchain technology is education. By providing accessible and easy-to-understand resources about blockchain, people can better understand its benefits and potential applications. It helps to demystify blockchain technology and makes it more approachable for the general public. It is one of the primary reasons why I have built this personal blog.
To address the scalability issues of blockchain technology, several solutions are being developed, including layer-two scaling solutions, sharding, and off-chain scaling solutions. These solutions aim to increase the transaction throughput of blockchain networks, making them more efficient and faster.
Improved Security Measures
Multi-factor authentication, encryption, and secure coding practices are some of the security measures that I feel developers must take to address security concerns in blockchain-based projects. Moreover, blockchain-based projects should undergo rigorous security audits to identify and address vulnerabilities before they are released to the common mass.
Regulatory clarity is essential to encourage the adoption of blockchain technology. Governments should develop clear and concise regulations that enable the development and operation of blockchain-based projects while ensuring consumer protection and preventing fraudulent activities. Clear regulations help to build trust in the technology and encourage its adoption.
Finally, blockchain-based projects should focus on developing user-friendly applications that are easy to use and require little technical knowledge. It is easier to achieve by investing in user experience (UX) design and developing intuitive interfaces that guide users through the process of using blockchain-based applications.
Indeed, I feel blockchain technology has enormous potential to transform various industries, but its adoption by the general public has been slow. Here I have shared my opinion regarding the problems and potential solutions. If you like this post, do not hesitate to share it on social media so that other blockchain enthusiasts can read it too. Please feel free to read my other posts:
Meet Rohan, a writer who loves to inspire and motivate others. He’s all about those feel-good quotes that can light up your day! When he’s not crafting words of encouragement, Rohan dives into the world of the latest technologies, exploring what’s new and exciting. But that’s not all—his heart beats for solar products, the kind that harness the power of the sun for a greener future. And guess what? He’s a total pet lover too! When he’s not busy writing, you’ll find Rohan surrounded by his furry friends, spreading joy and cuddles all around. Follow Rohan on Twitter and Facebook