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Blockchain technology, some people coin it as the fourth Industrial Revolution along with AI and metaverse. It is a technology that promotes clear transparency among people in terms of financial statements. But the real question arises if there is such a brilliant technology then why is it not in not in full motion yet?
Though blockchain is being explored in multiple sectors all over the Globe. And yet it is not in full motion. What could be the possible reasons for such an argument, is it the lack of support for technology or a political aspect to it? We will see in this article what are the core challenges for Blockchain not being fully committed to Payment Systems yet.
Volatility
The nature of blockchains has been witnessed by everyone around the globe all around the world, it is extremely volatile. One is always hesitant when having an option for transactions in Crypto but when there is already a stable option for trades that is cash why would somebody be willing to go for crypto or blockchain for that instance.
Though if there was stability in cryptocurrencies it is a much better form than cash or liquid flow, it is more optimized digitally, with no such storage problems, and no security issues. Ultimately if there was no issue with volatility it would have been in the mainstream.
Scalability
The major hurdle with Blockchains is that when the traffic is high on the blockchain it results in slowing down of the chain and hence processing speed is reduced and resulting in higher transaction fees, which wouldn’t be feasible at all for only one in the community, which would be more expensive and more time consuming than the traditional methods of finances.
The only ways by which these kinds of situations can be tackled are by investing in the infrastructure of the blockchains, which will result in more efficient networks with access to more blockchain has to offer.
Regulation
There are a ton of legal hindrances that will come along the way as it is associated with Cryptocurrencies which will ultimately result in a legal dilemma. And getting everyone up to speed with the technology would be a major challenge Regulating the technology to everyone when it is yet to be fully explored, though it functions well would still be a challenge to get it to a mass audience when it can’t support the mass yet.
Educating people more about it would be a way to get it more into regulation among people, which will ultimately result in more investments as more people have more knowledge about it and would be able to communicate on the same plane when it would be necessary.
Future Potential
Blockchain technology is still in its exploring stages in every sector, there are advancements daily and on a very large scale which shows how much there is still to be offered by blockchain and what kind of promise it holds. The versatility of blockchain is one that amazes even us to date, and it will continue to amaze us till the day it’s fully developed.
It can be said that there is a possibility for Blockchain to be used as a payment system in the near future, but there will be certain hindrances that would make it a harsh process to transcend. But once it is set in motion it has the potential to revolutionize the Financial industry.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
