Deloitte Highlighted concerns over Blockchain technology-In a recent study published by CNBC at the beginning of this month, Deloitte (which is one of the “Big Four” accounting organizations and the largest professional services network in the world in terms of revenue and number of professionals) has summarized five major areas of improvement for Blockchain Technology to achieve far-reaching acceptance.
According to Deloitte, Blockchain Technology has 5 big problems to overcome in order to be accepted by every single enterprise at large, and they are:
- Slow transaction processing speed
- Lack of standardization; interoperability
- Expensive and complicated blockchain applications
- The unreliability of legal and regulatory framework
- Lack of cooperation and collaboration between blockchain homologous firms.
Deloitte stressed the problems of operational delays on a decentralized ledger network. Which consumes more time and slows down the speed of transactions. Focusing on improving the speed of operation time can lead to greater acceptance of blockchain technology. This is on a larger scale as currently companies are predominantly not accepting blockchain technology because of the lack of operational speed.
Deloitte Highlighted concerns over Blockchain technology-Lack of standardization is another major hurdle in the way of widespread acceptance of Blockchain technology. Deloitte remarked that this lack of standardization is stopping many players from accepting this technology. Standardization brings uniformity and avoids digital disruptors from communicating with each other. The Big Four consultancy firm also added that there are more than 6500 active Blockchain projects on GitHub. Which are based on different protocols, consensuses, using varied privacy measures and even written in different coding languages?
Deloitte also pointed out the substantial costs involved in Blockchain technology which can be very expensive. The company stressed the importance of decreasing costs and increasing the comprehension of network applications. Deloitte presented examples of leading tech giants such as Amazon, IBM, and Microsoft who are continuously delivering less complicated implementations of Blockchain with the help of cloud technology and are also becoming more cost-efficient as they consistently cater to their market.
The consultancy pointed out the difficulty of executing smart contracts due to the unregulated legal and regulatory framework. This is the main issue that is preventing major players from adopting the technology.
In closing, Deloitte brought attention to the importance of Blockchain-related firms working collaboratively, stating that it is necessary for Blockchain homologous firms to cooperate in order to be innovative and that requires them all being supportive of each other. The company also said increasing the number of Blockchain consortia, such as R3, is a “bullish sign,”. Because the “value of a Blockchain network increases with the number of users.”
Great tips from an established consulting firm. Let’s see who takes heed!