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Blockchain, Businesses & Startups, Featured, World Economy

Lack of Standardization and Regulatory Approval Impeding the Blockchain-Based Platforms

Innovation on the blockchain is on the rise with its industry-wide applications. Finance, education, health, insurance, mining, food, space, energy, power, and others. Yet the one factor that is seemingly stifling its growth. In this article, we’ll try to find answers to strategic questions, pertinent to the blockchain, that has surfaced in the drafts of use cases to many problems.

Experts, apparently, are less than confident while providing blockchain solutions to global and industry-specific problems. This is owing to ad-hoc regulatory imposition and lack of clarity in the policies. This in turn results from a lack of understanding of blockchain operations.

Benefits of Blockchain 

Benefits in applying blockchain solutions to legacy systems come with benefits on many levels.

  • Enhanced visibility, collaboration, and operating efficiency made possible by blockchain’s transparency
  • Elimination of expensive market frictions and intermediaries
  • Back-office processes, including settlement cycles, made more efficient
  • Streamlined regulatory reporting and improved data standardization
  • Design of new business models and profitability from new blockchain platforms across the industry

Also Read: The Benefits of Blockchain Implementation in Cybersecurity

Concerns in Blockchain-based Applications

When we say blockchain has industry-wide application, it isn’t an exaggeration. It’s just that large companies with the baggage of their data built into a system and years of proficiency in handling those systems are wary of making the shift to a new infrastructure incurring a sizeable installment cost and personnel training.

Newer enterprises or startups have it easier built on a blockchain architecture. They also enjoy the benefits of being the first-movers or early adopters. However, the exuberant growth of the blockchain market places is startling too. The growth in sophistry in blockchain platforms poses yet another strategic question. Will the designs of today be scalable enough to still remain competitive tomorrow?

While most applications promise scalability, its extent still needs testing. 

Another concern impeding blockchain applications from going full-throttle is talent acquisition. Talent from other domains needs to be attracted to work in the blockchain-crypto space. This calls for some promise of continuity. An expert from another field will not work in this space only for remuneration. There needs to be trust imbued, that this space will thrive regardless of regulations, that will actually earn a crowd of professionals

Also Read: How Blockchain is Transforming the P2P Crypto Lending Procedure

Lack of Standardization in the Blockchain-based platforms

The most serious of concerns obstructing the path to industrial adoption of blockchain is its legal status. Various jurisdictions across the globe have adopted variably regulated stances on cryptocurrency. Many locales have had ad-hoc impositions on specific financial blockchain platforms stalling their launch or bringing them under heavy taxation.

Also, the establishment of a global consortium taking up the causes of decentralized platforms is important. Blockchain advocacy should seek to redress the spread of misinformation and intentional misguidance.

Also Read: Why Decentralized Blockchain is Ideal for Enterprises?

Wrapping up

While governments must regulate blockchain platforms, there has to be consistency among the countries for the people to derive maximum benefits from the projects built on the decentralized architecture. The worldwide adoption of blockchain would have a more concrete foundation should these concerns be addressed at the earliest.

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