Contrary to what many believe, Blockchain isn’t a brand new technology. It’s almost a decade old- which in the technology sphere is a benchmark for maturity. But despite all the buzz and excitement, Blockchain is struggling to get past the early adoption phase. The reason is multi-layered and even somewhat confusing. Let’s try and unwind it.
Blockchain and Cryptocurrency
While Blockchain is a technology and cryptocurrency merely an application of it, it was the first (Bitcoin) and for a very long time, the only tangible application. This essentially tied the fate of Blockchain to that of cryptocurrency- becoming popular only when the value of crypto skyrocketed. And it is only after the crypto market started cooling off; Blockchain is being recognized as an independent technology.
Check-out: How Blockchain Is Crucial For E-Commerce Security
Blockchain and the Internet
Many experts are of the opinion that Blockchain is a technology with potential even greater than the Internet. Hyperbole or not, if parallels are to be drawn between the two, Blockchain definitely seems to have a disadvantage. The reason the Internet expanded so rapidly is that there were virtually no restrictions in the early days and regulations came in only after it became ubiquitous. With Blockchain, it’s quite the opposite- it’s been subjected to regulation even before it is starting to prosper.
Take the latest GDPR for example- it enforces strict guidelines to data privacy- a regulation aimed at Internet companies that came 3 decades after the Internet was born. The problem is, the Blockchain technology that has just started to diversify into various domains, too is subjected to the same regulations- drastically crippling its speed of expansion and evolution.
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The Rise And Fall Of Cryptocurrencies
As mentioned earlier, Bitcoin has been around for almost a decade but it caught everyone’s attention last year when their value skyrocketed and as a result, started popping across the globe- some legitimate others scam. Those spur in crypto-related scams and their possible use in black markets then caught the attention of governments across the globe and regulations soon followed.
The Saving Grace
As of today, cryptocurrencies fall on a wide spectrum between legal and illegal- depending on which country you are looking at.
- Japan treats them as legal tender
- The US sees them as assets
- South Korea regulates it
- EU is still in a wait-and-watch mode
- China and India have banned it
This indeed is confusing for crypto investors, but the outlook for Blockchain development remains positive everywhere. Even in their regulation, governments have identified that Blockchain is a technology with great potential and it must be treated separately from its most popular application- cryptocurrency.
In fact, many countries are actively working towards creating Blockchain solutions for the unique challenges they face. This positive approach towards this new technology has given Blockchain a major boost, creating its demand across industries.
Where We Stand
As of today, Blockchain as a technology has moved past the shadow of cryptocurrency and is welcomed almost everywhere. But that doesn’t mean there are no challenges. As mentioned earlier, it is subjected to other Internet regulations, few which are in direct conflict to the very core features of Blockchain. For instance, to ensure privacy, users have a right to be forgotten. This means if a user wants, the businesses would have to permanently delete all his data. But data in Blockchain is permanent and immutable- making its compliance impossible.
The endgame
If you are a business exploring the possibilities of Blockchain development, you would first need to hire a dedicated developer, not for the actual development part but to get a detailed idea of its use cases and possible pitfalls.
