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Why is blockchain application developing slowly?

Time : 09/07/2021 Author : m5lw28 Click : + -
        It is inevitable to talk about "blockchain". Newspapers, politicians and even comedians mention it almost every day. Although the call for distributed ledger Technology (DLT) is unstoppable, the blockchain based platform adopted by institutions and enterprises has not reached an unstoppable level. For example, IBM estimates that only 15% of the world's top commercial banks plan to launch a comprehensive commercial blockchain in 2017. Similarly, compared with hundreds of token issuance projects launched every month, there are few examples of companies actually using blockchain services on a daily basis. Scalability is the most famous problem faced by blockchain. For example, Ethereum has caused a serious transaction backlog under heavy use, and some companies (such as KIK) have abandoned their plans to use it.
        In a blog post in December, blockchain Engineer preethikasireddy explained scalability as "several major technical barriers that make blockchain unrealistic in today's mainstream applications." The first answer to. Kasireddy mentioned that other key technical barriers raised by the mainstream include "unsustainable" consensus mechanisms, data storage issues, and the lack of formal contract validation protocols. Among them, the lack of privacy is a particularly important obstacle. She believes that "privacy is still a fundamental obstacle for individuals, organizations and industries that care about privacy and personal sovereignty.
        ”。 The fact is that popular ledgers such as bitcoin and Ethereum blockchain make every transaction open to the public receive a lot of (negative) attention in the financial world. "The privacy requirements of blockchain are no different from those currently applicable to any other technology in the financial market," Edward Budd, a former chief digital officer of deutschebank, warned last year. Considering the current lack of privacy, many financial institutions have avoided public blockchains. They turned to the privately distributed ledgerscorda, a blockchain platform specifically designed for enterprises and developed by Alliance R3 in New York.
        However, the limitation of "ideology" still hinders potential adopters. The bankofcanada said in May 2017 (after the completion of the blockchain experiment): "at its core, the centralized wholesale interbank payment system (…) There is a fundamental inconsistency with the decentralization within DLT. ". In other words, just because banks, enterprises and institutions act cautiously under the principle of decentralized blockchain, they will be hindered, because blockchain is considered to threaten their business behavior and affect their economy. In its 2017 annual report to the securitiesandexchangecommission, JPMorgan wrote, "financial institutions and their non banking competitors are exposed to the risk that payment processing and other services may be interfered by technologies such as encrypted currency, which do not require any intermediary.
        ”。 This is why such banks will turn to more customized private accounts, such as corda, which is not even a blockchain. The definition of "blockchain" is very controversial, which is actually another main reason for the relatively slow development of blockchain applications. In other words, the encryption field and blockchain space are currently defined by a high degree of variability and uncertainty. At the same time, while providing blockchain solutions, many organizations compete with each other, from R3 to Ethereum enterprise alliance to BM. Because the work of multiple blockchain developers is cross cutting &mdash& mdash; Different classifiers serve different needs, so there is no distributed ledger application that can truly achieve a take-off network effect.
        The IBM survey mentioned at the beginning of this article also mentioned that 65% of banks plan to start blockchain projects within three years from 2017, and some organizations and national governments (such as China and the European Union) have begun to try to cultivate more technology standardization applications.
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