Ilan Nass, the Chief Strategist at Taktical Digital Marketing Agency, dedicates this post to the struggles that blockchain will have to face in the near future to speed up the growth of the technology.
Blockchain is a cutting-edge field that’s currently experiencing incredible growth, but it also faces a number of obstacles on the path toward adoption on a larger scale. It will take time for blockchain to move past these challenges and be leveraged to its fullest potential.
While cryptocurrencies were once the most prominent utilization of blockchain technology, we are only beginning to explore the range of applications for blockchain. Both startups and more established businesses are investing heavily in this technology and developing blockchain solutions for a variety of industries, including digital marketing. These are some of the most important concerns surrounding the future of blockchain.
Startup Costs & Skill Gap
There’s no question that blockchain offers valuable benefits compared to more traditional solutions, but it also comes with high startup costs that make it more difficult to implement. The blockchain talent gap is a major obstacle to growth, as there aren’t enough knowledgeable professionals to cover the growing need for blockchain development and support.
While large businesses can afford to use blockchain, small and medium companies typically don’t have the resources to take advantage of the technology. Supply will need to catch up with demand before blockchain solutions can be a realistic option for most businesses, and this is a limiting factor for wider implementation.
Forward-thinking companies are constantly developing innovative blockchain solutions, but the majority of customers still aren’t aware of the technology’s benefits. Most people associate blockchain with cryptocurrencies and don’t know anything about other uses. As with any new technology, audiences need more time to warm up to blockchain.
Due to its connection with cryptocurrencies, blockchain will also have to overcome negative perceptions that associate them with illegal markets. It will be much easier for businesses to market blockchain solutions once people think of the technology as a normal part of life
Customers are more concerned about environmental issues than ever, and cryptocurrencies that use blockchain consume vast quantities of energy. In fact, Bitcoin mining alone currently uses roughly the same amount of energy as all of Ireland.
Until cryptocurrencies can find a way to verify transactions more efficiently, energy consumption will be one of the most problematic challenges for blockchain growth. Fortunately, Ethereum is moving to a proof-of-stake mechanism that requires less energy—other cryptocurrencies will hopefully follow their lead over the next few years.
Blockchain is clearly poised for long-term growth, but it does face some noteworthy obstacles that could slow down its progress. These are a few of the toughest challenges blockchain faces in the future. Many companies are already working on solutions to these issues that will speed up growth and normalize the technology more quickly.
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Chief Strategist at Taktical Digital Marketing Agency