As the blockchain economy report a huge increase in scale and size, there is a looming question that needs to be confronted: what do we do with this technology? Historically, finance and technology have always adopted a centralized structure but blockchain is offering an opportunity to face in the opposite direction.
Blockchain decentralization has the potential for an economy that is trustless, one which has got no monopolies and security is a given. In the current world, blockchain has decentralized power use as well as manipulation of sovereign supplies of money will fade way. This idea is however far from being a reality due to the prevailing state of technology. The prevailing state of affairs is made up of pioneers who are attempting to integrate the decentralized technology with centralized structures. This has raised many questions with few answers.
In many cases decentralization is always seen as blockchain’s entire raison d’être. However, in its current state, blockchain still has very many challenges and limitations. Centralized services and structures which currently exist will have to sieve and tale in the best aspects of blockchain technology.
Owing to the fact that blockchain is in its early stages of evolution, it will be sensible for an established company or organization to adopt a hybrid approach which strike a balance between the utilities of decentralized and centralized technologies, while at the same time moving towards a more decentralized system. There a few challenges which must be addressed before mainstream blockchain adoption is finally realized.
First blockchain has very limited scalabilty. Every particilating node in the blockchain network has to process every transaction. Consequently, major blockchain networks like Bitcoin and Ethereum have low rates of transaction settlements.
Another major challenge is preventing the mainstream adoption of blockchain is usability. Applying blockchain in its current state is not user-friendly. This is because the whole idea of blockchain is still new and intimidating to many people. Decentralized applications will have to work on improving their user experience.
The reputation of blockchains has also been in questions. It may be difficult to put trust in an invisible system instated of real people. It becomes even more complicated if the technology is hard to understand.