An increase in the adoption of blockchains has also created many challenges associated with blockchain implementation. Indicating that there is still a long way to go for blockchain technology before it can be completely implemented.
Some of the problems that are being witnessed in the implementation of the blockchain are discussed below:
One of the major challenges in the implementation of the blockchain is the cost associated with it. Where public blockchains only process a few transactions per second, enterprise blockchains, like Hyperledger Fabric, claim to process 3,500 transactions per second.
The implementation cost of blockchain is also very high. The software requirements are very expensive and the cost of hiring the right people who are in short supply is also very high.
For big organizations, having a large customer base, it is clear that scalability is a must for them. But in the current scenario, most of the enterprise blockchains are untested to that extent. This at present can be considered as one of the biggest challenges associated with blockchain implementation. Also, an enterprise blockchain network has not been implemented by any financial institutions to determine its success rate.
Data Privacy is Low
One of the biggest advantages of enterprise blockchain is that it is decentralized, meaning there is no requirement for a middleman.
Being one of the biggest selling points of enterprise blockchain, it also is a disadvantage in the implementation of blockchain.
Most organizations want their data to remain private. In a decentralized network, enterprise data can be used by their competitors to gain an advantage in the market.
Lack of Knowledge about Blockchain
Blockchain technology has slowly started to gain recognition. There are only a few people who are aware of this technology, whereas for the majority of the people it is completely new and technical. People have very little clarity about the concept of blockchain and by extension, enterprise blockchain. Lack of proper knowledge and information about the blockchain is another implementation challenges associated with this technology.
The organizations that are being targeted by blockchain technology are running very well on the present legacy network.
There are a few challenges that the businesses are facing on the current legacy network, but this hasn’t stopped them from delivering effective services to their customers.
People are very comfortable with the legacy structure and if any attempts are made to implement a new structure, it may destabilize the complete business.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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