Why Blockchain lacks mass adoption? | COINNUP
Why Blockchain lacks mass adoption? The lack of accountability, the lack of consumer protection, the strong association with black market dealings or else?
Merely to say, Bitcoin, Litecoin, Dash, Ethereum, Monero, etc. are cryptocurrencies that use blockchain technology. Hence, Blockchain is the underlying technology, and a cryptocurrency is one possible application of this technology.
You’ll hear a lot about this technology in crypto-oriented websites, financial magazines, and news outlets. But why isn’t everybody embracing blockchain’s technology?
Simply because cryptocurrencies don’t have the same qualities as money. For example, Cryptocurrencies aren’t easy to spend, not fast to transact, and people aren’t used to this technology, and most of the people don’t know how to use cryptocurrencies.
Let’s discuss the issues that are slowing down a ‘mass adoption’ of the blockchain.
So, why Blockchain lacks mass adoption?
What do blockchain consumers want? Some commonly accepted attributes are:
• A reliable network
• Fast and cheap transactions
• Control over anonymity
• Security and Accountability
The blockchain is supposed to be the opposite of that one big database controlled by the single authority. The idea is to be decentralized. The blockchain technology will be considered scalable if it can satisfy all the consumers even if more users keep coming.
Delayed Transaction Time
The crypto isn’t still a viable currency. The delayed transaction time makes the cryptocurrencies not ideal to be a “true currency”.
The transaction of a credit card, Visa or AliPay is speedy and instantaneous. It’s due to the very fast networks of the companies. Visa can handle 24,000+ transactions per second. AliPay can handle more than a billion transactions in a single day. On the other hand, Bitcoin can only process seven transactions per second.
Hence, Bitcoin isn’t doing well on that end.
High Transaction Fee
The transaction speed and cost are closely connected. Every transaction in the blockchain network has a transaction fee attached to it which is fixed by the sender. In a crowded system, every consumer will fight to get their transaction processed first. If a large number of transactions are waiting to be confirmed, the miners can prioritise the ones that will be included in the next block. And the miners will be more likely to pick the ones that have the higher transaction.
Blockchain technology lacks usability. It’s yet complicated enough to buy, move, exchange and store securely. The average people aren’t interested in going to an interface like stock market trading to move their money around.
Is the Blockchain technology reliable and secure?
No one will be able to hack the blockchain system fully. In fact, attacks on the system become increasingly expensive to organize. Bitcoin is robust, as it relies on all networks to secure the validity of the ledger.
For a successful attack, a lot of relative mining power will be required. In fact, Mining equipment needs a lot of energy and expensive, too.
A central authority can’t manipulate crypto. Although banks are adopting the blockchain technology too fast, they are clinging to the centralised system to retain power. Third parties consider the decentralisation of cryptocurrencies as a threat. In fact, all the third parties such as credit card, lenders, banks are threatened by the possibilities that the consumers no longer need them in a peer-to-peer world. Furthermore, the old system is rigged in favor of the powerful and rich. The decentralisation of blockchain technology takes away this power and shifts it to the masses.
How to Overcome These Obstacles
The following steps may encourage the mass adoption of blockchain technology.
Building a simple, yet effective solution on a platform that will feature its own customer’s protection system and will allow the users to buy online with the same easy way they do when using Visa, PayPal and so on.
A single platform with the majority of financial components that blockchain can offer at this age of new era can shift the mindset of masses. Cryptocurrencies are extremely volatile and HYPE driven. One possible solution is a better alternative to currency FIAT platforms where the user can buy or seller cryptocurrencies, pay bills, recharge mobile, send and receive payments, trade and spent their holdings in traditional retail stores online or offline.