Blockchain Initiative Is Going Mainstream But Half Of Companies Are Struggling

Blockchain Initiative Is Going Mainstream But Half Of Companies Are Struggling
<a href="">MichaelWuensch</a> / Pixabay

Bitcoin introduced the world to blockchain, the technology that underpins the cryptocurrency, which has the potential to dramatically improve the speed and security of networks around the globe.

And even though bitcoin has struggled to take off in the way many of the cryptocurrency’s most prominent supporters might have hoped, blockchain still has plenty of potential.

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Mainstreaming the technology is just starting. Analysts at CLSA note that last month, Walmart enforced over 100 ‘fresh leafy greens’ suppliers to use IBM’s blockchain platform for food supply chain management. This is just the “type of mainstreaming process” the Global Thematics team at CLSA have been looking for as it shows the willingness of a significant player in the global retail market to use blockchain in its supply chain. The Walmart-led initiative “has inherent scale and global relevance” the analysts note. The Walmart–IBM due is also working with in China on a similar blockchain initiative.

Adoption is being helped by the recent launch of so-called stablecoins, which are vital for the long-term success of blockchain technology because these coins have less volatility. For example, a stablecoin startup called Circle recently launched its first stable fiat token where 1 USD Coin (USDC) can be converted to 1 USD.

However, while Walmart and IBM might be having some success with their blockchain technology, few other companies have been able to claim the same success.

According to a recent research report released by Greenwich Associates, despite the enthusiasm and hype surrounding blockchain technology, its integration in existing systems is proving difficult. The report includes responses from various industries banks, consultancy firms, technology vendors, dedicated blockchain companies, exchanges, and more. 42% of respondents identified scalability as a significant problem, with 30% calling it a minor issue.

Meanwhile, 57% of blockchain executives said implementing the technology had been harder than initially expected. Only 14% of the businesses that responded to the study said they had already moved into production.

So, it is clear there are still some significant hurdles for companies to overcome before blockchain becomes widely used and accepted as part of the enterprise management infrastructure worldwide.

This article originally appeared on ValueWalk Premium

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