Blockchain is already being tested and in many cases even applied effectively in some companies and organisations.
- JPMorgan Chase uses blockchain for payment transfer in some locations.
- The government of Estonia has started an e-government initiative in which all citizens have a digital identity. It is based on blockchain.
- The government of Canada is working on similar digital identities for its citizens.
- Japan is experimenting with cryptocurrency as part of its reserves.
- IBM has announced it wants to establish a blockchain technology joint venture, which would work towards conducting global trade in a secure way.
Challenges of wider adoption
Companies are still looking for the most effective applications. There is also a shortage of engineers available who would have a thorough knowledge of the blockchain technology.
For some companies, it may be hard to transition to a blockchain system simply because the integration of current systems would be problematic. When a blockchain-based system is added, there are only two options:
- Complete modernisation of the current technology
- Integrating current technology with a blockchain system
Both options require skilled expertise, money and time.
Regulation and governance
New technology will probably be regulated sooner or later. One regulatory challenge for blockchain technology stems from the fact that a core part of the blockchain design is to provide anonymity in transactions. An entity is defined by a 64-digit alphanumeric key (a public key or wallet). To provide transparency, identity data would have to be linked with each blockchain public key. These insights come from the cfo.com website.
-jk-