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.
Currently, we are living in an era, where market researchers/analysts are constantly looking for robust and reliable app development companies in their focus industry to team up with. At Parangat Technologies, we take immense pride in backing up our claim that we are amongst the leading Blockchain App Development Companies in the market, today. As an evidence, Clutch.Co, a platform that provides verified ratings and reviews has honored us with 5 Star Reviews on its platform.
When businesses hear blockchain, they’ll often link it to cryptocurrencies and little else. However, blockchain technology is increasingly becoming a feasible solution for a wide range of sectors, including:
Deloitte published a 2019 report that surveyed more than 1,300 senior executives around the world at companies with an annual revenue of $500 million USD or more. Take a look at their findings below:
Based on their research, they’ve concluded that 53% of executives consider blockchain to be a critical investment and have placed in within their top 5 strategic priorities. This is a 10% increase from last year.
The blockchain landscape is maturing, which is why we’re excited to gain industry-wide recognition from Clutch, a B2B ratings and review platform that collects client feedback to rank companies!
With 16 top-rated reviews and 5 Star Reviews Rating on Clutch, we’re also featured on its sister sites: The Manifest and Visual Objects.
Of course, we don’t just specialize in Blockchain. Our team is well-versed in developing innovative mobile apps to support our clients’ brands.
For one of our recent projects, we partnered with a grocery delivery startup to develop a set of cross-platform iOS/Android applications.
The three apps serviced our client’s users, drivers, and operational team. Once logged in, users could order groceries and pay for them digitally. A driver would then deliver the items, and everything could be monitored by the operational team.
Since our client was a startup, we also provided technical and marketing advice to set them up for success. Documenting all of our processes each step of the way helped keep everyone in the loop.
“Parangat Technologies is full of dedicated and interested workers. Their views and commitment to engaging are the best things about the company.” – Founder, Grocery Delivery App
In another project, we worked with a retail consulting firm to create an app for iOS, Android, and web.
What made this solution so special was a custom interface that would adapt to each user’s industry. This brought a personal feel to our client’s services while still showing that they’re a capable, tech-savvy consultancy.
With the help of our apps, our client’s annual growth jumped from 10%–15% to about 30%, and metrics such as average spend per user improved across the board.
We’re incredibly thankful for our clients’ reviews on Clutch and are honored to have been a part of their success, whether that was through emerging blockchain technologies or effective, cutting-edge mobile apps.
Instead of relying on advertisements that disrupt the online experiences of their target audiences, native advertising allows marketers to create “in-feed” and inherently non-disruptive promotional content that supplements the online experience of a user, such as promoted tweets on Twitter, suggested posts on Facebook and sponsored content on Buzzfeed or Mashable. Content marketers are increasingly turning to native advertising because it is known to be building trust and engagement with prospective customers than traditional display advertisements.
The blockchain is a record-storing innovation, which enables users to contribute information to a chain, which is a kind of a “digital ledger,” before it gets locked by other computers in the network. The entire blockchain system is secure, non-auditable, transparent and efficient.
The combination of these factors develops trust and promotes confidence at every level without having to know the person at another end. The blockchain is essentially a database that exists in multiple duplicates on different PCs.
These PCs follow a shared system, implying that there is no single, centralized database or server, rather the blockchain database exists within a decentralized system of machines, each serving as a hub on that system.
A survey by Facebook and IHS Inc. found that native ads can form up a calculated 63% of mobile display ad spending by 2020. Furthermore, the research found that media buyers will spend $84.5 billion on mobile ads. Native in-stream ads will account for $53 billion in digital ad spending by 2020. This proves beyond any doubt that native advertising is the next big thing in advertising and marketing. Consumers are tired of disruptive advertisements and their attention spans are diminishing rapidly.
To revive consumer interest, marketers have no choice but to use “inbound” marketing strategies, like native advertising, which by virtue of it seeming like part of the story, is natural to the point of being indistinguishable from the main content.
How Blockchain can benefit Native ads?
Customized Native ads
The design of native advertisements can be customised so that users can better interact with customers and obtain incentives. Native advertisements are an advertisement type presented by specific media in a more relevant way based on the material from advertisers. The goal is to include some elements in the form of native advertisements based on blockchain ecosystem and let users better understand that an advertisement is from that ecosystem, so that they can engage more proactively.
2. Native Advertisements feed
Advertising is content. Through combining advertisements with different types of content feed, applications will keep users for longer. Information traffics native advertisements basically lead new forms of advertising to switch from single advertising format to content feed. Native advertisements feed provides personalized recommendations based on user feedback, including both content and advertising. There are various navigation categories, such as news, video, food order, clothing, and cosmetics, etc. Users can switch on their individual content feeds from the chosen categories of interest. In each of the chosen categories, users can browse news or videos, order takeout or purchase desired advertisements. The system will give a personalized recommendation based on user feedback and users can also comment on given content and advertisements.
Blockchain technology holds excessive possibilities for every marketer with an interest in native advertising. On the one hand, native advertising in its many forms is growing very rapidly. On the opposite, blockchain applications are rolling out on an everyday basis. Platforms that combine one with the other offer great opportunities to get ahead of the competition.
A rapidly growing ecosystem of companies is looking at how blockchain technology can be used to improve the administration and enforcement of IP rights across multiple jurisdictions. The Blockchain and Intellectual Property Law field is numerous and could impact both the governance of IP rights and the IP industry itself.
Blockchain for registered and unregistered rights could arguably be used to provide proof of creation, existence, ownership and/or first use, to register IP rights, to facilitate the administration and management of IP rights on a global scale, thereby potentially contributing to the emergence of “global IP chains” and to enforce IP rights and fight counterfeits in a more efficient way.
While applications of blockchain technology could help to alleviate some of the challenges that rights-holders face, the technology will not solve all issues. But one thing is certain: the disruptive nature of the technology, the multiplicity of potential applications emerging, and their practical and legal implications deserve the attention of regulators and legislators.
There are four primary types of IP protection: patents, trademarks, copyrights, and trade secrets. Therefore, an IP protection strategy must include an understanding of the scope of each type of protection and how it can be applied to a specific innovation. Clients seeking the assistance of an IP attorney are usually able to identify the “property” that they would like to protect.
A patent can protect a machine, process, or article of manufacture. A U.S. patent holder has the right to exclude all others in the United States from making, using, selling, offering for sale, importing, and, in some cases exporting, implementations of their claimed invention for the duration of the patent (typically, approximately 20 years). This is an exceptionally powerful right, granted by the U.S. government that is given to the inventor in exchange for the public disclosure of their invention. While patents are a flexible and powerful form of IP, they are also usually the most expensive and most difficult to obtain due to the fact that a relatively protracted application process is required. Owners of pending patent applications may mark commercial embodiments of those inventions as “patent pending,” which can provide some competitive advantages against potential copiers during the patent process.
Copyright exists in any original work of authorship (e.g., literary, musical, architectural, and pictorial works) that has been fixed in a tangible medium (e.g., a book, a photograph, a compact disc, or a digital memory device). The holder of a copyright has the exclusive right to reproduce, distribute, perform, display, prepare derivatives of, and digitally transmit the work, and may also mark works with a copyright notice.
Computer programs and databases are considered literary works as it relates to copyright laws. While it is useful to keep and maintain copyrights in software source code and database schema and contents, especially since there is little effort needed to obtain the copyright in the first place (e.g., original authorship and a fixed medium), the protection provided by a copyright is somewhat limited and primarily intended to prevent true piracy as opposed to mere imitation.
A trademark is a name, word, phrase, logo, symbol, design, image, color, or combination thereof that is used to identify the source of goods or services bearing the mark. A trademark holder has an exclusive right to mark goods and services with the mark in order to put consumers on notice of their source, and the duration of a trademark that is continuously maintained and used by the mark holder is indefinite.
There are no significant software-specific considerations with trademarks. Trademarks should be considered for software application names or logos that an owner would like to distinguish from other applications.
4. Trade Secrets
A trade secret is: (1) any information (e.g., a process, formula, design, instrument, pattern, method, or compilation of information), (2) that the holder has taken reasonable measures to keep secret and (3) that derives independent economic value from being neither publicly known nor readily ascertainable by proper means by those who can make economic use of it.
A software application should be evaluated early in its development to determine the extent to which it can be maintained as a trade secret. Where important software features are embodied in user-facing or clientside processes, relying upon patent protection may be the better option. Where features or databases containing important information are kept server-side, maintaining them with a high level of security, encryption, and access control may allow them to be kept as trade secrets indefinitely.
With the current influx of investment in blockchain technology, growing popularity across a wide variety of industries, and the recent upsurge of blockchain and intellectual property law, this space is poised for significant growth in the years to come. Many have likened Blockchain’s revolution to the early days of the internet, poised to be the very next iteration of disruptive technology. There are many firms looking to be at the forefront of adopting blockchain, from startups to Fortune 500 giants, and with the right investments in intellectual property, as well as smart partnerships, these organizations can position themselves for success in the promising new world of blockchain.
Want to know more about Blockchain and Intellectual Property law and its implications in your business? Request for a free quote to reach out to us on [email protected] and our experts will get back to you with the best solution for your business.