Blockchain is considered one of the most hopeful for mass adoption in different spheres of our life. Many analytics believe that the simplicity of use and decentralized nature of it are the main triggers. Still, a lack of understanding of the differences between blockchain and digital currency is the main obstacle. Taking into account that blockchain and cryptocurrency are hot topics of news and online discussions, can we hope to facilitate this process?
Can blockchain mass adoption happen in the nearest future?
Sometimes buying cryptocurrency seems difficult to newbies. Attracted by the anonymity of Decentralised exchanges, people often choose them as a place to buy and trade crypto. Compared to existing cross-border payments, like electronic wallets, decentralized applications have complex processes for the average user. They don’t support fiat transactions. And if you are new to blockchain and crypto, you need to create a crypto wallet. But how to get crypto in there?
Centralized crypto exchanges help you to get started with crypto easily. At the CEX.IO platform and their Canadian crypto exchange, you can simply buy it with your card in a few clicks. After that, you can withdraw tokens from CEX.IO to any of your wallets. Also, many platforms are multifunctional and give you access to different crypto markets and services.
There are also barriers to entry, even for developers looking to build blockchain-based applications. Statistics show that blockchain transactions are often stuck due to overload. Take the Ethereum blockchain, for example. The network is the most popular ground for building dapps and because of the large number of users initiating transactions simultaneously, the transaction speed can reach a few days. What’s more, Ethereum takes extremely high fees to perform transactions during the overload.
Hence, there are some scalability solutions, like Polygon, running Ethereum transactions faster and at lower costs. Or the Tron blockchain, which is able to conduct transactions with some of the Ethereum-based tokens as well.
Simplifying and facilitating the setup processes and integrating easier-to-use interfaces will enable people to realize the non-technical value of the blockchain. We’ll be able to use blockchain and cryptocurrencies every day and get better solutions for our daily needs.
Examples of first movers
Here are a few examples showing the start of blockchain mass adoption.
The gaming industry can expand significantly thanks to blockchain technology. Players can receive compensation for their participation. For instance, to start playing Axie, the most famous crypto game, users have to buy Axie NFT and AXS tokens, which can be subsequently exchanged for other digital assets or fiat money.
What’s more, to access the blockchain you need just a device with a good internet connection. So it simplifies the entry process for customers. Also, blockchain is open source, and developers can use ready-to-work codes for their projects and combine their efforts even if they are in different parts of the world.
National Blockchain Network
When completed, the Australian National Blockchain digital backbone will be the national first enterprise-grade blockchain network. It aims to enable businesses to collaborate using the IBM blockchain platform.
One more example, Next Generation Blockchain from Kratos Protocol going to introduce an enterprise-grade platform where companies can develop their own apps. Nowadays, the lack of interoperability between blockchain apps and business systems is one of the core challenges that hinder blockchain mass adoption. So the community put many hopes for the Kratos project.
Governance for government
A core peculiarity of blockchain solutions is transparency within decentralization. This allows involved parties to check and verify data independently. For some citizen services blockchain opens the opportunity for independent confirmation of government applications. Sweden, Estonia, and Georgia are already implementing blockchain-based land registries. This approach can quickly resolve property disputes and even prevent them.
The US government faces unique challenges. Piloting test cases, and implementing solutions the government is uniquely positioned as a regulatory, regulated, and consumer of blockchains.
While the path to blockchain adoption may be more transparent for the private sector the distributed P2P constructs integrated into the blockchain are often influenced by complex inter-agency communication and information exchange policies. And this situation requires an innovative approach.
Banking & Capital Markets
The evolving model of the distributed ledger has an incredible social impact on financing opportunities, risk, and financial inclusion. Where once cryptocurrencies were accepted as instruments for speculation, they are now making possible SME supply chain financing and trade remittance around the world. So we have new market possibilities for secure transactions.
With all the skepticism in the traditional financial world, blockchain and distributed ledger are creating a positive social effect for SMEs. This is particularly distinguished in developing financing possibilities, mitigating risk, and encouraging financial inclusion. We’ll see whether the social impacts be sustainable and stimulate blockchain mass adoption.
With its decentralized and open-source nature, blockchain can enhance transparency and trust at every stage of food and other goods production. It can help to monitor the supply chains and verify the authenticity of the product. For example, IBM Blockchain makes possible secure data sharing and automation of the working processes across organizational and national barriers. So it strengthens the weak supply chain tracking and trade relationships disrupted by the pandemic. Additionally, blockchain contributes to improved ethical consumption by tracing the authenticity of components and manufactured goods.
Despite significant institutional investments in the crypto industry, manufacturing executives are more cautious and are slower to adopt blockchain than other industries.
We’ll be naive if argue that blockchain issues are not significant obstacles to its mass adoption. Still, some of the challenges are the growth triggers essential in any new technology. When creating the business case for implementation, blockchain enthusiasts should convince their companies to take risks, build robust relationships, and make agreements that are common in other areas.
Given the benefits that businesses are already benefitting from blockchain, and the increasing calls for transparency between organizations and organizations, blockchain can be a powerful solution.