Blockchain technology was invented in 2008 and its first practical application was in the construction of Bitcoin, an invention that is both a decentralized payment network and a virtual currency. The applicability of Blockchain technology is, however, not restricted to the field of payments or the financial sector. On the contrary, this innovative technology has wide fields of application in the most diverse sectors of activity.
Blockchain is a technology that allows multiple participants with a common interest in a given end result, but without necessarily trusting each other, agreeing and relying on a common view of events, without having to resort to an entity but replacing mechanisms provided by technology itself to establish this trust in a common, shared and unchanging memory of these events. These events may correspond to transfers of value made between virtual currency participants such as bitcoin, or any other changes in ownership of other assets represented digitally.
By replacing intermediaries with technology itself in the process of establishing trust, Blockchain reduces friction in business processes and simplifies value chains, theoretically allowing for dramatic cost reductions and significant operational performance gains.
Blockchain not also allows for the creation of new forms of value, such as virtual currencies like bitcoin, but also for the execution of smart contracts that may automatically integrate supply chains, and for the creation of new mechanisms of behavioral incentive that reward participants, like steemit.
For all these reasons Blockchain technology could lead us to a new economic, social and political era. But why is this new age slow to come?
There are several factors that help to explain the still low level of adoption of Blockchain technology by the general public and the practically nonexistence in established organisations.
1 - Technological factors
Blockchain is recent and still an experimental technology. There are yet few technological standards to facilitate interoperability between Blockchain networks, their interoperability with legacy systems, and thus facilitate their rapid implementation and adoption. Existing platforms are not yet robust enough or sufficiently performing to withstand massive use, and have a low energy efficiency.
2 - Organizational Factors
There are still not enough technically trained people to support Blockchain's adoption in all organizations and in all sectors of economic activity, and those that exist are mostly focused on start-ups.
3 - Regulatory, political and risk factors
The use of Blockchain is not regulated which tends to discourage traditional economic agents. The existence of regulation would bring greater legitimacy to technology, reduce uncertainty, and foster its adoption. The political reaction to the unanticipated emergence of Blockchain and its penetration into systemic areas has been to make it difficult to expand, giving time to building mechanisms for monitoring and controlling the phenomenon.
4 - Illiteracy and usability factors
The technology and its capabilities are still unknown to the general public and the existing user interfaces are still very complex, very technical, not very ergonomic and do not offer a good user experience for the average user.
5 - Cultural Factors and Resistance to Change
Blockchain promises to change the current technological, economic, social and political paradigms. It is natural that resistance to change arises from those who wish to protect situations of comfort and / or privilege.
6 - Network effect factor
The number and diversity of participants in a network determines the value of the network. Absurdly, a social network with a single participant has no value. Despite their growing popularity, Blockchain-type networks are still under-invested. It will be necessary to bring more participants to the Blockchain networks so that their users can benefit from the network effect.
7 - There is no Killer App yet
Unlike the Internet and its use for e-mail, there has not yet been a Killer App that will drag the crowds into this new technology space.
But, while there are many and varied reasons why Blockchain has not yet become a mainstream technology, many people are committed to solving each of these problems. Blockchain technology is a technology with high potential and very promising. It will, therefore, surely be part of our lives in a very short time.
