Why Blockchain isn’t mainstream yet?

Blockchain was the buzz world in 2017 and it appeared like it will take over every aspect of our daily lives. We heard news of banks trying it out and the gaming industry putting their rewards over blockchain and it appeared that in a couple of years, it will be everywhere. Then what went wrong? Let’s find out.

What is Blockchain?

Let’s get one thing out of the way, cryptocurrencies are only one implementation of the blockchain, so if the crypto market is down that doesn’t mean that the Blockchain industry is down although it’s perceived that way. Blockchain is a digital ledger technology which theoretically is decentralized.

For e.g., if you wish to make a transaction and you don’t want it to be recorded, you can’t do that at least on the applications which are intended for public information. In that case, you could be all-powerful, may we say, you are the government? Previously you could take down the whole system, every single node and every other transaction with it, to remove yours from the ledger. Well, you can’t do that in Blockchain doesn’t matter who you are.

Imagine taking down every single computer and phone that runs on the internet. If Applications are designed over its core concepts, then it can take down the empires built on corruption and trickery. This is what a top Blockchain development company should focus on, how to change the existing system.

Do you really need Blockchain?

Blockchain exists for an idea somebody had, to decentralize the systems. People predicted as things advance, as time passes, the population will increase, and resources will remain scarce. The current political systems are failing so bad right now and it will get worse with time. Blockchain plan to baptize the world and make it corruption free.

If you are an entrepreneur, you should hire Blockchain developers to create an application that might solve the hierarchy problem. Every industry we have in our world runs in a hierarchy, Blockchain was built for changing that, for being the new internet of the world. Everything was and is still going well, but as we get into the practical world, there will always we small roadblocks before a breakthrough.

What went wrong?

Blockchain fell into scalability issues when Applications (Dapps) were built over it. In order to make the transactions over the blockchain, you appoint various Nodes (computers) to process transactions. But the nodes need some incentive to do that? Here it gets tricky. For every transaction, miners must be paid, but customers don’t want to pay for every transaction that happens on the blockchain.

Imagine LinkedIn built over blockchain, you have to pay for every edit you do to your profile, what kind of users will use that? And if there are limited users then the fees will always be high as the cryptocurrency which is used to power the system won’t have much value for people mining it.

Other Challenges

Crypto market became over-optimistic and greedy people used it for their pump and dump schemes. Fraudulent ICO’s and coins flooded the market and once supply was way too high then it all collapsed. People moved away from the scene, but tech companies kept developing new applications over it. In fact, application creation is at an all-time high in early 2019. We can call it Blockchain 2.0 era. There is so much more I want to share about Blockchain 2.0, but maybe next time folks.

The current state of affairs

Blockchain is being implemented in banking, schools, corporate and retail industries. Everyone is trying to board the blockchain train, but no one knows what to do once they are on it as the mass adoption is still far away. People have been so caught up with the idea of the blockchain, they are jumping on to conclusions which weren’t a problem in the first place.

What to expect in the coming years

Now, let’s talk about the future, Blockchain 2.0 is new wave of developments happening over blockchain. It’s all about programmable transactions, it can also handle complicated standing instructions in a decentralized platform. Blockchain will enable much more than just being another transaction management system and will live up to its expectations. As we briefly discussed above, this isn’t a new internet, Blockchain is going to be THE new internet.

Blockchain 2.0 should enable a platform for micro transactions, decentralized exchanges, creating and transferring digital assets, smart contracts and much more. In the next few years, we will see big companies roll out their applications for mass users, when people will know its benefits then only it will be everywhere.