The blockchain which is also termed as Distributed ledger technology is an unarguable ingenious invention. One of the biggest buzzwords in technologies of the current times. One can easily find Blockchain as if in keynote speeches at conferences, Google search, trending video, and even your favorite gym.
Well with the innovation in evolving technology, blockchain attracts companies of every size. Real adoption of blockchain is in for insurance companies, food supply, finance, law enforcement, identify cross border transactions & many more. Blockchain technology has the potential to make transactions more secure& transparent. Despite developing unique and various use cases, there is a slew of challenges. That needs to be solved before adopting blockchain on a large scale.
Let’s have a look at the five major challenges blockchain is facing in 2020.
The Major Limitation and Challenges of Blockchain
Functional scalability issues
Brain drain because of high energy consumption
Lack of security and legal uncertainty
Regulation in the ecosystem
Low awareness and understanding
1. Functional Scalability Issues
One of the hurdles in Blockchain is implementation issues. To get a clear insight, let understand through the example of bitcoin. For example, the bitcoin blockchain is expanding at 1 MB per block every ten minutes. Currently, it has a size of 241 GB. While an Ethereum full archive node currently takes up over 3 terabytes of data.
While another issue could include time taken issues. IN the case of the blockchain development the validation takes several minutes. Because the maximum capacity of transection of bitcoin is around seven transactions per second. Blockchain networks are slow, which make it’s unviable for large scale application.
2. Brain Drain because of High Energy Consumption
Ever since its inception Bitcoin trust minimizing consensus has been enabled by its proof of work algorithm. The machine performing needs around 200 GB of storage space in every node that is part of the blockchain network. Along with that other requirements are 5 GB upload & 500 Mb download every day.
0.2% of the total electricity is used by miners presently. If it continues to increase then, Miners will take more power than the world can afford by 2020. This is the main reason many organization is avoiding blockchain.
And to control the situation, blockchain can utilize the Consensus method to validate the transitions. As consensus algorithm requires very little energy to process. And this is a genuine way to bring blockchain technology in business again.
3. Lack of Security and Legal Uncertainty
Another factor that challenges Blockchain is the lack of talent to build a decentralized application. No matter what perks blockchain technology has a flaw in coding or loophole is one of the significant challenges in it. Because of false coding and loophole, one can use this deception and can hack the system easily.
Not only that but Blockchain Decentralization can redefine data privacy. As anonymous features of the blockchain not only attract experts but criminals too. Because the nature of the network is decentralized so that no one can know your true identity. This is the main reason for targeting bitcoin, as it is used as a currency in the black market and the dark web. While many criminals use cryptocurrency to purchase an illegal weapon. To stop the increasing criminal connection halt blockchain implementation.
4. Regulation in the Ecosystem
TheFourth major key challenge of blockchain is a decentralized ecosystem. As many organization uses blockchain technology as a means of transaction. But as there is no specific regulation about it, no one follows any rules when it came to the blockchain. It results in significant risk for anyone who wants to get involved with blockchain.
A well-decentralized ecosystem consists of multiple layers, and many layers are still are under development.
5. Low Awareness and Understanding
Many professional experts in finance have less or no knowledge of blockchain. That is another challenging factor in its evolution. 99% of people failed to understand blockchain or bitcoin or cryptocurrencies. Well, you can not blame the mass, as much of the blockchain discussion tend to be technical. As in the world 0.5% of the world using blockchain technology. And in that blockchain app development companyis one of them.
To make it viable a new tact is required to skip its painful explanation. So that more people can use it and it gets a chance to fight for its existence.
Blockchain technology is still evolving. However, to implement on large scale it involves an array of serious challenges that need to be addressed. The current focus to make this new, innovative technology widely available.
Also, many of the issues get resolved based on how they get implemented.
Today, private and permissioned blockchain is being integrated. At the top, hybrid of various blockchain protocols are adopted to achieve what’s needed. This also nullifies many of the above-mentioned limitations. Hence, anything that is built on the blockchain is very transparent and everyone involved is accountable for their actions.
Since blockchain technology has drawn the curtains, there have been tons of improvements in the technology. The biggest one being cryptocurrency like Bitcoins, which has brought a new revolution in the financial world. However, there are many other cryptocurrencies like Ethereum, Litecoin, and Dash with distinctive features, but Bitcoins have set the bar way high.
While most blockchains only use nodes, masternode is a revolutionary feature in this industry. This second-tier network of servers has a real-time full copy of the blockchain all the time. Masternodes are known for better speed, faster transactions, effectiveness, and easy governance on the blockchain. Blockchain has been known for its data integrity and reliability. Many experts believe that blockchain technology may soon replace traditional database systems. But, there are many pros and cons of blockchain too. Also, there are many misconceptions about this technology around. Here, we are list down the features of the expectations and reality in blockchain technology:
1. Global Decentralized Technology
Blockchain is assumed as a global decentralized supercomputer. Came into the limelight after the Bitcoin development phase, blockchain supported cryptocurrency trading on the internet. But how does it work? Blockchain verifies the transactions by performing operations. In one block, a certain number of transactions are recorded, and the block is linked to the latest block to keep the information up to date. Blocks carry transaction records. These blocks are connected to each other like a chain. It is not managed by any supercomputer or server. In fact, the distributed network of millions of computers worldwide managed it.
2. Anonymous and Transparent for Data Privacy
Blockchain supports cryptocurrency transactions. The transaction address is encrypted codes that are not linked with personal information. Transactions are anonymous and easily traceable. But it is not purely right! Transactions taking place between acquaintances, the history of the operations can be found with the owner’s address linking up. Between companies, trade histories are visible. Contacts and sale info are on display. One can look into the transactions. So, blockchain is not private and keeps your information private.
3. Not controlled by a central authority
No individual or company controls cryptocurrency. Also, it is not dependent on any system or server. It has become nearly impossible for an individual to mine Bitcoin as a specific machine is required to do the task. Miners build mining pools and carry the mining task. It is a misconception that a central authority controls the blockchain.
4. Legal Currencies will disappear
It is well-known that cryptocurrency does not exist in any tangible form. Cryptocurrency has tons of expectations, including direct money transfer, cheap transaction fees, no complications in transactions. People expect that with the boom of cryptocurrencies, legal notes will disappear. It is a sham and nothing else!
But, there is a big catch as the cash or liquid money will not go anywhere. Transactions in trading experience a time lag that doubts the permanent usability of cryptocurrencies. Also, as the number of cryptocurrency transactions increases, the time lag increases, which means currency transfer takes longer. It does not make it a practical currency for long-term usage.
5. High Scalability
Cryptocurrency working with blockchain concepts seem to be highly scalable. As the number of transactions increases as per user, the issues of scalability will generate. The capability of the system to handle a growing amount of users and to accommodate the users’ growth is the problem here. As the number of transactions exceeds and it causes an overflow of blockchain. Further, the time lag between payment sent and received increases.
Short-term or Long-term strategies?
Expectation- After seeing the projects increasing at an unbelievable pace in weeks, people got addicted to unsustainable strategies. And, according to them, people do not find it necessary to think that all the projects are different. They just put their plan under the “cryptocurrency” tab with the same expectations for each project. Reality- Every project is different and has different goals & purposes; there is no need to put all your projects under the same tab and expecting the same growth for each project. In reality, many industries are out there that don’t work like this manner. A lot of businesses realized the importance of sustainable practices and hence profoundly care about the project goals and the tech required behind them. They focus on building a sustainable business and strengthen the brand with a long-term vision. These people would be best described as long-term traders.
And then there are some people who are in it just for the sake of money. In the world of blockchain technology, there are opportunities for people to make money with blockchain. As soon as people realize that blockchain meant to make money, they jump on it as their gold card. Without focusing much on project objectives, pressuring projects into exchange listings that only bring value to them — these people would best be described as short-term supporters.
Well, there is a place for both long term and short term strategies. There’s chaos when once one side massively outnumbers the other.
Effective Project Development is the Key
Expectation: As we all know, we humans rationalize our decision based on the trends that are happening around us. All of us. When an investment’s price rises over an extended period, then it becomes hard to tell what was impacting the bull market. And, it becomes tougher to believe that this could just be happening due to the frame of mind, not advancements of technology.
Reality: In reality, the only rational explanation is that the more you focus on your project, the better your app idea is, the better it is for people.
But this has a negative effect when the project was performing worse or doing something wrong. But, this was not the case.
Compared to other industries, Blockchain-related projects are more transparent. Always communicate and collaborate with users and supporters. This can enable them to see the development process on-hands.
Blockchain is serving many industries with its new and increasing demand in the tech world. It has not limited itself to just cryptocurrencies. But it is not going to solve every problem in the world. There are many pros and cons to the blockchain. That’s why blockchain must be implemented safely in the best possible way. There have been many assumptions made across the blockchain spectrum, and expectations are built upon those assumptions. But, all of them might come true. So, before getting into cryptocurrencies or taking any decision with blockchain tech, please get to know more about blockchain and its reality.
China’s political and economic system is at its worst possible time because of coronavirus. Several Chinese businesses and factories are now struggling to reopen business activities. The majority of businesses’ are operating below their capacity due to the Coronavirus plague. Chinese Government is using every tactic to tackle this virus and to minimize its effect on the populous. Nodoubt, china is the world’s second largest economy and you can see their growth over time.
Breakdown of China’s Economy because of Coronavirus
In today’s date, China is now the 2nd-largest economy in the world, estimating for 16% of global GDP. Whereas in comparison, in the same time period, the U.S GDP never topped 3%. Anyhow, china’s overall GDP is almost 9 times larger than it was during the SARS outbreak in 2002-2003. But due to this deadly plague, it had impacted China’s Economy, along with Japan and Vietnam. As they import material and parts from china. I won’t be wrong if we say they relay on the Chinese supply chain.
But now china grapples due to coronavirus, the economic damage is mounting around the world. Businesses are dealing with great loss in revenues and disrupted supply chains due to china’s factory shutdown. 10 million people remain lockdown in dozens of cities because of the corona.
The pandemic plague has hit a lot of economic activities and transactions in the world. Sadly, several crypto conferences and events have bee postponed or closed because of this outbreak. A devastated economy of China, bring a devastating effect on the world market too. The blockchain technology is easily available to China 2019s beckon to weather the storm.
As the United state-backed away, china had an opportunity to move into high-potential technology by investing in blockchain. China’s most important goal in developing blockchain would be to help create a digital currency. Not any new cryptocurrency like Bitcoin, simply making already – the existing monetary base digital. Blockchain can be fundamental for tracking & recording transactions & creating a new unit controlled and distributed by the regime. It can further enable china’s digital economy where half of all digital transactions Totaling over 9 trillion last year.
The Rise of Emerging Tech in China
China is indeed aiming for technology supremacy, pumping billions into emerging industries from biotech to artificial intelligence. But digital currency would enable China to not only harvest the benefits of digital transactions, but also possibly gain a look at where the money is being used, and by whom, restricting money laundering and following a growing environment of surveillance.
Along with that, blockchain serves as a barrier against international cryptocurrencies. And also helps the government to retain control of the money supply.
Moreover, this would help easily China’s increasingly cashless society.
IN this deadly storm, blockchain might be the closet port to help them to get out of it. Let’s hope they opt for it, because of china’s economy whole world economy is at stake. China is organizing to dispersed technology, requiring that all “nodes” using the blockchain register with the government and provide information on their users. It doesn’t help to achieve blockchain’s goals of privacy and transparency. But In contrast, it has implications for human rights as China traces loyalty through financial transactions. As data is astonishingly complicated to be edited once added to the blockchain, it makes participating in party loyalty apps and purchasing censorship-free materials, becoming more difficult to avoid as China moves towards a more cashless society.
Pharmaceutical supply chains are particularly complex, requiring the input of multiple stakeholders with many important requirements placed upon them, which brings many challenges. Pharma Supply Chain with Blockchain offers a digital ledger system to securely record transactions on a peer to peer network in chronologically ordered and transparent blocks.
Naturally, having so many stakeholders able to input and change data adds complexity to the quality of the data. It is difficult to monitor and validate the correct information and secure against human error and missing documentation. Interactions are often time-sensitive, yet documentation may not always be managed quickly. There is also the overall issue of manufacturers, logistics companies, wholesalers and pharmacists not being able to have complete visibility on the authenticity of a drug and the quality while it is in transit.
Blockchain offers a digital ledger system to securely record transactions on a peer to peer network in chronologically ordered and transparent blocks.
Currently, the medicine verification system and the supply chain must meet the following criteria:
Updating and Sharing data–
Allow multiple parties to update and share data
Verification ensures that the information can be trusted
Interaction with national and European medicines verification system to allow all parties to have visibility in the drug authenticity.
There are significant issues within the current system.
Intermediaries add complexity:
The more parties involved in handling the medication, the higher the risk of interception or damage
Interactions are time-sensitive
Drugs must be delivered within a good timeframe as pharmacists need to be able to provide quick service to patients
Manufacturers, logistics companies, wholesale and pharmacies may not be able to offer complete visibility on the authenticity of the drug whilst ensuring quality has remained intact.
Using a Blockchain Solution has Advantages
Pharma Supply Chain with Blockchain can make a substantive difference to the pharmaceutical industry. At every stage of the process, barcodes would be scanned and recorded onto a blockchain ledger system which, in turn, records and creates an audit trail of the drug journey. Sensors can also be incorporated into the supply chain, with temperature or humidity being recorded onto the ledger system. This is particularly important for drugs requiring fridge storage, such as insulin or expensive specially manufactured medicines.
When the drug reaches the pharmacy, the pharmacist can tell through the blockchain audit trail, if the drug has been compromised at any point of the journey. Even at the time of dispensing the prescription, biometric measures can be used to record the dispenser and pharmacist checking the prescription. This can all be recorded onto the ledger, allowing drugs to be tracked from the moment of creation to the moment the patient takes the drug home.
• Reduced complexity and costs:
– Pharma Supply Chain with Blockchain becomes traceable and drugs are easier to track
– Information systems will hold expiry date details which improves stock control and rotation
• Reduces errors:
– Drugs can be verified and authenticity can be ensured
– Patient harm is reduced as drug checks are improved
• Enhances security:
– Counterfeit drugs are minimized
– Patient harm is reduced
– Data is kept safe
• Proven resilience:
– The system’s data will remain protected
• Shared, trusted transactions:
–All parties are able to access the drug information when needed to ensure the quality of the drug being dispensed
Parties must be able to trust the data as it determines if a drug can be dispensed
• Creates an audit trail:
–Drugs are easily traced making recalls easier
Parties can see if the process has become compromised at any point
• Enhances transparency between authorized parties:
– All parties can see every stage of the drug journey to ensure the drug authenticity
– Regulators, such as pharmacy inspectors, can monitor the rate of counterfeit drugs entering the supply chain, with more accuracy
In Europe, the new regulation on serialization was made applicable on the 9th of February 2019. The objective of this system is to enable the identification and authentication of medicines guaranteed by an end-to-end verification of the supply chain of all medication.
However, in Europe, with the new Falsified Medicines Regulation (FMD), pharmaceutical companies will have to send the serial numbers of each medicine to a European hub. Then, these will be sent to the national databases of each country in which the drug is marketed. The hub is, therefore, the guarantee for the interoperability between all these databases and is a central authority, moving thus away from the principle of decentralization provided by the blockchain.
Through the use of blockchain, the drug journey can become more secure and streamlined. Every delivery can be tracked, with the delivery driver traced through biometric measures. Every checkpoint involving the drug is recorded and tracked via biometric measures, 2D barcode scans or sensor technology. As the drug is tracked from creation to patient, the whole of the drug journey becomes seamless, accurate, audited and secure.
The future of technology lies in high speed and increased security. 5G internet and blockchain technology represent both swift speed and foolproof cyber safety. As per a research, the IoT market will reach $1.1 trillion by 2026. More number of “smart” devices need better connectivity and separate identity. In this hyper-connected world, 5G internet and blockchain technology become even more important. Let us find out how these two disruptive technologies will shape our world–
WHAT IS BLOCKCHAIN TECHNOLOGY?
If you keep up with business trends, you must know words like cryptocurrency and bitcoin. Most of us are aware of these terms. But, very few understand their back-end technology – blockchain. However, blockchain is a lot more than a digital currency. In simple terms, blockchain is a distributed database that exists on many systems. Every “block” has a timestamp and certain information. Every block is also linked to the previous one. Thus, a “chain” is formed. Now, you may ask about the security of data? Let us answer your question below. The entire database is independent. One can only add new blocks while the old blocks remain irreversible. This eliminates the risk of manipulation by fake data. Every block has a unique encryption and a special cryptographic key. Only one user can have this key. This ensures that the information remains accessible but cannot be manipulated. If you have the key, only you can add new blocks. Cryptography synchronizes the copies of the blockchain on every node of the network. To learn more about blockchain, you can always refer to our consulting services.
WHERE IS BLOCKCHAIN TECHNOLOGY APPLICABLE?
Blockchain technology is the most disruptive technology of the last two decades. It has revolutionized the business world with its decentralized nature and secure transactions. Studies suggest that the market cap of its application will reach over 30 billion by 2024. This technology keeps track of the entire customer journey; be it a financial transaction or sharing of business intelligence. Contrary to popular belief, blockchain technology has more than 200 cases. It is much more than cryptocurrency. Some of its important uses are:
Use of cryptographic keys help in establishing a strong, unbreakable digital identity. In 2019, everything requires a digital ID. It may be a banking transaction or a simple swipe to enter your office. Traditional systems protect our confidential information with a simple, unsafe password. Whereas cryptography requires a private key and a public key for authentication. Only the owner of the complete digital signature can access the data.
Blockchain technology makes app development a simpler and more reliable process. It is cost-effective and takes lesser time to develop.
The biggest challenge mobile developers face is the threat to cyber-security. Blockchain brings transparency and increased safety to user’s data. The use of blockchain technology is more beneficial for applications related to healthcare, financial services, and supply chain. To learn more about blockchain application development, check out our insights
SUPPLY CHAIN MANAGEMENT:
Supply chain management requires continued cooperation between multiple parties. The centralization of this system leads to confusion and mishaps. Moreover, there’s always a chance of fraud and misrepresentation of data. A centralized distributed ledger system like blockchain helps in streamlining the entire supply chain process. It brings transparency and security. We provide exemplary services in the field of supply chain. Read more about it on our website.
Blockchain the future of technology since it enables security. The number of smart devices is increasing every day. Hence, we require a foolproof technology and high-speed internet to ease it.
5G – THE INTERNET THAT FLIES
5G is the internet of your dreams. You will be able to everything you do online at a much faster rate. It will enable faster downloading, quicker streaming with a more stable connection. If you’re a fan of sci-fi movies, 5G will make most of your fantasies come true.
HOW WILL IT HELP US?
Studies suggest the 65.53% of the entire work population is connected with a cellular device. In fact, the number of mobile connections has exceeded the world population by 1 billion. All of us depend on a smart device for necessities in life. The present internet network is weak and crashes under pressure. The number of IoT is only going to increase. What we need is faster and stable connectivity. 5G internet will address all these problems. It can handle millions of smart devices simultaneously. It can provide more stability and reduce system breakdown.
ROLLOUT OF 5G NETWORK
5G network is soon going to be a reality. A study by Gartner shows that 7% of CSPs worldwide have already deployed 5G network. As per Sylvian Fabre, “5G wireless network infrastructure revenue will nearly double between 2019 and 2020”. The worldwide revenue of 5G network will reach $4.2 billion by 2020.
BLOCKCHAIN TECHNOLOGY AND 5G NETWORK – WHAT TO EXPECT
The rise of 5G network and blockchain technology are highly dependent on each other. 5G network will bring seamless and real-time interaction between smart devices and humans. This faster wireless network will bring down latency rate drastically. Latency is the time lag between instructions for an action and its performance. A lower latency rate will accelerate the speed and performance of smart devices. Here’s what we can expect with the onset of the 5G internet and blockchain technology-
THE TRUE POTENTIAL OF INTERNET OF THINGS:
Internet of Things, or IoT, is a term given to everything connected with a computing device. It could be a machine, a robot or even a human with a computer chip. Your alarm clock, security system, vending machines or a Smart TV are all IoT. They are bound to improve processes and ease social life. But, they cannot function without high speed, low latency and a stable network. 5G network eliminates all these bottlenecks. An increase in number of IoT may also create a security issue. Blockchain technology provides better transparency with decentralized distribution.
THE RISE OF INTERNET OF SKILLS:
Internet of skills (IoS) is a new concept. It enables specialists to provide their services virtually. A dentist could perform a medical procedure with virtual headsets. An electrician could fix an appliance in a similar way. All this could only be possible with low latency and high transparency. 5G and blockchain technology would help establish IoS.
THE INCREASE IN AUTOMATION:
A smart city or world would consist of interdependent cellular devices. Their use would automate human processes and simplify tasks. The process of automation would become useless if the network speed was slow. Too many devices would create chaos without security.
5G network and blockchain together would speed up the automation process.
5G internet and blockchain form a synergetic relationship. Their benefits would revolutionize the use of technology and overall quality of life. Their multifold relation will forever change the way we function. The world will only get smaller and virtual in the years to come. We need faster internet and a secure technology to safeguard data. 5G and blockchain will soon become the pillars of technological advancement. Many companies have realized the benefits of blockchain. As a progressive organization, you must join the bandwagon to a seamless future.
We, at Parangat technologies, have years of expertise in blockchain technology and its application. It is time for you to upgrade to future. Contact us to learn more about blockchain and how we can help you implement it in your business.
In recent years, a set of heterogeneous players has become established along the media value chain: artists as the primary creators of content, aggregators, and platform providers plus (depending on the country and type of media) a collecting body handling royalty payments. In the media value chain, content management is basically the content management bypassing through aggregators and distributors. Blockchain allows everybody to become a marketer as reach of lead generation becomes trackable and can be compensated.
With the advent of blockchain this industry structure could change significantly. Blockchain technology permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent. Thus market power shifts to the copyright owners.
While some applications of blockchain technology may still seem farfetched and require further technological advancements, payment focused use cases have already been proved to work. Parts of the media value chain are therefore already endangered by new blockchain-based content management applications.
Liberalization of advertising market
More precise performance tracking of advertising efforts
Blockchain facilitates customer relationships
Based on the blockchain, everyone from leading media houses to small influencers can easily generate advertising revenues. As blockchains permit an exact tracking of content usage, it also enables a direct allocation of advertising budgets. Together with new, blockchain-enabled micro-payments, content creators are able to establish direct relationships with their customers.
Example: As artists tie up digital copies of their songs or videos in a blockchain they will be able to sell them directly to their fans without any intermediaries such as record labels. Moreover, a fair allocation of revenues from music streaming becomes possible, whether advertising or paid content-based. Artists can market their songs independently of big platform providers wherever they want, since a blockchain permits easy tracking of usage and deduction of the associated payments.
Some of the content management blockchain apps are:
Blockchain acts as an enabler of such a platform play because, unlike the current dominant platforms, it provides transparency, data privacy and trust across the ecosystem: the different parties involved in the platform (advertisers, agencies, ad tech providers, publishers) have access to relevant and certified data. Without blockchains, they are reluctant to share this data for fear of ceding competitive advantage or revealing high-value audiences.
Blockchain offers the ability to encrypt data that machines can see and optimize across, while contributors have access only to what they are permitted to view. Personally identifiable information, such as an IP address, can be masked. The result is that a broad ecosystem of advertisers, publishers and second- and third-party data contributors have gained the performance outcomes of a walled garden without the need to share data that could be used to poach customers. This approach could provide the performance outside the control of dominant intermediaries, which currently impose both burdens and control in exchange for that performance.
The modularity provided by blockchain applications enables various aspects of Media companies’ operations to be streamlined, which helps make them more cost-efficient and faster, as well as more reliable, scalable and transparent.