Blockchain technology has existed for over a decade, but its mainstream adoption has been slower than anticipated. While it has gained popularity through its initial application, cryptocurrencies, it has the potential to do much more than facilitate transactions. However, several hurdles are holding back its widespread adoption. This article will explore the primary obstacles blockchain technology must overcome to reach its full potential.
- The Absence of Foundations
Blockchain technology is still in its infancy, and it has not yet developed the necessary foundational layers that enable growth. The technology has progressed rapidly in speed but incrementally in terms of the building blocks that will allow that growth. With Bitcoin and Non-fungible-tokens (NFTs) being the first uses of blockchain to gain mainstream visibility, the early stages of creating the tools and building blocks to enable more complex ideas were skipped before the public had a chance to evaluate or speculate.
This has resulted in a lack of available tools, making it challenging for developers to build blockchain products. For example, there are no viable solutions for using a third-party service or leveraging another company’s offerings for developing a blockchain-first login system. As such, companies need to build their solutions, which may not be as efficient or effective as future startups that would dedicate their entire business to developing these solutions.
- The Lack of Product Focus
Blockchain startups have focused primarily on the hype and potential for funding rather than solving real-world problems with the technology. Instead of being driven by a passion for addressing a specific issue, they primarily focus on creating a “blockchain company” and trying to cash in on the technology hype.
The lack of product focus has resulted in many blockchain startups struggling to gain traction as they fail to address real-world concerns with their products. Unlike artificial intelligence, which has focused on real-world applications and products that solve real issues, the blockchain industry has been more concerned with creating a “blockchain company” rather than providing real value to customers.
- The Challenge of Reaching Mainstream Users
The blockchain industry currently lacks a mainstream user base, as most people who use or are involved with blockchain are those who work there. While there is a lot of enthusiasm and hype surrounding the technology, it is still not widely adopted by mainstream users.
To reach maturity, the blockchain industry needs to shift its focus from selling the technology itself to selling the value it provides users. This means creating solutions that are accessible and easy to use for the average person rather than just catering to a small group of enthusiasts. By doing this, blockchain technology can become more widely adopted and integrated into everyday life, making it an invisible yet powerful tool for improving our lives.
What’s Next For Blockchain
As blockchain technology develops, it will become more widely adopted. The industry must overcome the hurdles discussed above to reach this point. Developers must focus on creating the necessary foundational layers, creating products that solve real-world problems and making blockchain technology more accessible to mainstream users.
As funding slows down, companies quietly working on building blocks will succeed. This will lead to the seamless integration of blockchain solutions into products and websites across the internet. As a result, blockchain will become as computer science solutions should be, invisible and everywhere.
While blockchain technology has the potential to revolutionize many industries, obstacles still need to be overcome for it to reach mainstream adoption. However, by addressing these hurdles, blockchain technology can become more widely adopted, making it an invisible yet powerful tool for improving our lives.