President of OneLedger Technology Inc., overseeing the successful development of a global brand and the OnePass vaccine passport.

Top C-level officers identifies blockchain crucial part of their organizational infrastructure

How long will it take for blockchain-based services to replace existing services? For example, after the internet was introduced by the Pentagon’s Alphanet in 1969, it took more than 40 years for the existing offline business to become an online business using the Internet.

According to Deloitte, 53% of C-level officers — from CEOs to CFOs — identified blockchain as a crucial part of their organizational infrastructure in 2020 and a technology that can help their organization function more efficiently. Since November, PayPal has supported cryptocurrency trading services and recorded the company’s highest performance. Visa has also decided to support blockchain transaction services to banks worldwide. As a result, there is a way for banks to trade currency such as Bitcoin in the future.

No matter how new blockchain technology is, it seems not too far from commercializing blockchain-based services that can replace existing services at a time when technology development is accelerating.

What are the obstacles to implement blockchain technology?

Blockchain is often compared to the internet, but people knew how to use it intuitively when the internet first came out. Still, blockchain has an impressive background where technology comes before distinct use, so it has many obstacles to realization.

• Lack of Understanding: C-level executives or decision makers have not exposed its use cases and blockchain concept.

• Lack of Experts: Blockchain is still considered a new technology that only a few experts can deliver.

• Movement Away From the Legacy System: Even digitalization itself needs efforts and resources; new training for the employees and customers could be a big drawback.

• Blockchain Misconceptions: Cryptocurrency has been used for black money at times, leading to a misconception of blockchain.

How can these blockchain obstacles be overcome?

• Lack of Understanding: In many cases, C-suite executives don’t need/want to understand blockchain complexities, but they do need assurance that the blockchain is compliant with data privacy, security and other regulations. They want solutions for their most complicated business challenges that reduce cost, shorten cycle times, improve customer satisfaction and increase transparency.

• Lack of Experts: Build an ecosystem and partner with those who excel in this area. One of our partners told us that the collective experience of hundreds of engineers and experts could be costly to replicate in-house. However, testing engineers can work on-site or entirely remotely depending on the needs. This way testing competence can be obtained considerably faster than trying to build a fully functioning team in-house and crafting custom testing solutions if needed.

• Movement Away From the Legacy System: Interoperability is one key to moving the current system to the blockchain and saving resources and time. Interoperability means the ability to act as an integrated system and execute a series of processes accurately, even if communications are on different networks, which are free to share services or exchange information among other models or systems. In this case, enterprises can use a digital modulation gateway to communicate with existing and blockchain data.

• Blockchain Misconceptions: Various governments are scrambling to enter a new world by establishing a global and interoperable central bank digital currency. Building a digital infrastructure that can respond to the rise of a globally distributed network that reduces network expansion costs and lowers barriers to entry to new forms of third-party intermediaries can solve the problem of defining blockchain only as a cryptocurrency.

To create a blockchain that will be applied to a wide range of markets, step-by-step technological development and social consensus are needed. There is no doubt that blockchain technology will be the starting point for innovations. There has been a battle whenever new technologies emerge in society. How to achieve social consensus and make technical supplements based on this technology will be an essential topic.

Originally Published By Forbes

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