Corporations are struggling with blockchain, with scalability a key issue
Corporations are falling behind expectations when it comes to blockchain implementation, according to new research from Greenwich Associates.
Top workers in the industry cite scalability as a key issue in working with blockchain, with 42 per cent saying it was a top concern. Other challenges mentioned in the study are security, confidentiality and ‘editable blockchains’.
The report reads: “The industry has lagged behind its own optimistic expectations from two years ago. Implementing enterprise technology designed to replace decades of legacy market infrastructure is no simple task, and 57 per cent of blockchain executives told us it has been harder than expected.”
213 participants took part in the study, including professionals from corporations, tech vendors, exchanges and consultancy firms.
The transparency that many see as a plus of blockchain may actually be holding corporations back from embracing the technology, the research indicates, with two-thirds of respondents mentioning the importance of zero-knowledge proofs (ZKP).
“ZKPs are a recent innovation. They require an additional layer of cryptography in the consensus protocol that allows one party to prove to another that something is true without revealing any other information,” said Richard Johnson, VP of Greenwich Associates Market Structure and Technology and author.
Scalability has been a persistant issue for blockchain and crypto, with Australia’s Reserve Bank saying in June that Bitcoin’s biggest issues are still speed and its ability to scale.
“[N]ine years after its launch and about five years since it entered the public consciousness, Bitcoin continues to have structural flaws that make it unsuitable for many uses, many of which stern from its inefficient varification process,” said Tony Richards, head of payments policy.