The problem

Barriers and blockchain adoption

While blockchain technology is often heralded as revolutionary across various sectors, its widespread adoption remains limited. This is due to several structural and technical obstacles that prevent many businesses and institutions from fully leveraging blockchain's potential.

1. Complexity of Blockchain Solutions

Current blockchain solutions require advanced technical skills and a deep understanding of the technology. This can be daunting for companies and developers who are not specialized in this field, facing a steep learning curve. The need to manage complex smart contracts and ensure data security on a decentralized network adds further complexity. For example, while sectors like supply chain and healthcare could benefit from the transparency and data integrity offered by blockchain, the technical complexity often exceeds the resources available for implementing such solutions.

2. High Transaction Costs

Traditional blockchains, such as those based on Ethereum, impose high fees for every operation performed on the network, known as "gas fees." These costs can fluctuate dramatically, making the use of blockchain unpredictable and often prohibitive for everyday applications or projects with limited budgets. This issue becomes even more significant when considering blockchain adoption in more traditional sectors, where high transaction costs can deter usage for applications requiring a broad scale or frequent interactions.

3. Complexity of Implementation and Maintenance

Developing and managing smart contracts is not only technically challenging but also requires ongoing maintenance to remain secure and efficient. This involves constant monitoring and the need for regular updates to fix vulnerabilities or implement new features. Maintaining smart contracts is critical, as errors or vulnerabilities can lead to significant financial losses or legal issues, especially in regulated sectors such as finance or healthcare.

4. Security and Compliance Concerns

Security is a major concern for companies considering blockchain adoption. Securely managing cryptographic keys and protecting sensitive data are essential, especially in sectors where privacy and regulatory compliance are critical. Security concerns, combined with the lack of clear and uniform standards globally, create an environment of uncertainty that can slow the adoption of blockchain technology.

5. Public and Regulatory Perception

Blockchain is often associated with cryptocurrencies, a sector characterized by high volatility and speculation. This perception limits the consideration of blockchain as a technology applicable in traditional business and institutional contexts. Moreover, the lack of clear regulation adds further uncertainty, making organizations hesitant to explore the potential of blockchain.