Corporate sector is cautious in using Blockchain technology
Dec 11, 2017 Posted / 1532 Views
Google in its recent statistics for the searches depicted an upward trend for the Blockchain, where keywords like buying Bitcoins and use of Blockchain dominated the web. There could be several factors, which may be working in favor of the digital currencies and Blockchain technology. The major reason could be the mammoth surge in the prices of the Bitcoin, which the media has highlighted significantly.
Despite several fluctuations, the use of cryptocurrencies and blockchain technology has amplified considerably. Even the government administrators ascertain that Bitcoin and Ethereum blockchain will soon replace the lawyers and accountants, as the use of smart contracts will enlarge. But there is one uncomfortable fact that the Blockchain enthusiasts are facing, which may dissipate their plans of making blockchain technology gigantic. The corporate bosses are cautious in employing Blockchain to work, as they are still uncertain about the consequences, which it may have in long term.
Many corporate heads feel that the blockchain technology may look good in theory but significantly lacks pragmatism of the real economic world especially how businesses operate in the era of globalization. They view that trade and supply chain sectors in truth are quite convoluted, especially in Asian countries where most of the businesses operate under strict regulations, authoritative systems, and manual documentation. For instance, there could 30 different parties, which could be involved in business dealings with diverse business practices.
It is important to consider here that despite the present hype for the blockchain technology, the amount of investments on the platform is noticeably very less. Banks are the major investors in the blockchain with 1.5% of revenue dedicated to the research and development of the blockchain. On the contrary, if you will compare these investments by the major banks with the percentage devoted to the research of other technologies, you will conclude that it is extremely less.
Developing Blockchain is expensive as its efficacy is defined by the quality of research. According to the reports, there are only a few hundreds of blockchain engineers in the world in addition to the cost required to invest in different development platforms utilizing diverse setups with multiple companies. This explains why using transformational technology like blockchain would be complex in addition to being costly.
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Notably, people in the higher hierarchy of the corporate houses invest profoundly in technology solutions and currently are working to encompass artificial intelligence. But most of the leaders suggest financing the research and development of those technologies, which are more mature and widely adopted. This elucidates that Blockchain still needs to establish its credibility among the potential clients.
Even the blockchain advisors say that most of their time is exhausted in elaborating what is blockchain technology and the way it works rather than unfolding the advantages of this technology. Nonetheless, the blockchain enthusiasts need to be more explicit about the benefits of the blockchain and devote more time for changing the mindset by describing the short-term gains of and eying on long-term later.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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